New tax incentives to hire unemployed workers

Upholstery Journal | June 2010

The $16 billion jobs bill, which is intended to expand the American workforce, states that all businesses hiring employees before Jan. 1, 2011, will be exempt from paying the 6.2 percent employer share of Social Security payroll taxes. The new worker must have been unemployed for at least 60 days and cannot replace another employee.

If the business retains the new employee for one year, the employer will then be entitled to a one-time $1,000 tax credit for each such worker.

The bill extends the Section 179 expensing provision, which allows small businesses to write off up to $250,000 of 2010 capital expenditures. The bill also increases the investment cap to $800,000 for the current year.

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