Small business job creation is an important engine in driving the continued recovery and growth of the U.S. economy.  Small businesses hiring new employees in 2010 can benefit from the Hiring Incentives to Restore Employment (HIRE) Act of 2010.  The HIRE Act provides employers an incentive to hire workers who have been unemployed for 60 days or longer by exempting wages paid to these workers from the employer's share of Social Security payroll taxes for the remainder of the year.  Additionally, the HIRE Act allows employers to claim a tax credit of up to $1,000 for each newly hired qualifying worker who is retained for one year.  The U.S. Department of the Treasury estimates that 4.5 million new workers have already been employed due to the HIRE Act.  For more information please click here.

Illinois small businesses can also benefit from the Illinois Small Business Job Creation Tax Credit, a one year credit that will help create up to 20,000 jobs.  This new law creates a $2,500 tax credit on withholding tax for employers with 50 or fewer total employees who hire new, full-time Illinois employees during the 12-month period beginning July 1, 2010.  To qualify, a job must pay at least $25,000 per year.  For more information please click here.

Warm regards,

Hedy M. Ratner & Carol Dougal
Co-Founders and Co-Presidents