The U.S. Senate recently passed a bill that would provide tax credits and incentives for businesses to add new hires, especially those who have been unemployed for some time. Specifically, if the bill becomes law:

  • Employers that hire a worker who has been unemployed for at last 60 days would be exempt from paying the 6.2 percent Social Security payroll tax this year.
  • The employer would get a $1,000 tax credit for 2011 if new employees remain employed for a full year.

Effectively, this cuts your hiring cost by the 6.2% of the tax — money you can use to pay a higher wage, pay benefits, or to help add staff within your current budget. So many startups put off initial hiring until it is too late — hopefully these tax incentives will get your business moving in the direction of hiring when you need help rather than when your business is already suffering!

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