H.R. 2847, also known as the Hiring Incentives to Restore Employment Act or HIRE Act, was designed to provide incentives to businesses to hire unemployed workers, according to Forbes. The act authorized a combination of tax exemptions and tax credits intended to reduce unemployment between Feb. 3, 2010 and Jan. 1, 2011.Continue Reading
Under the act, signed into law in 2010, businesses could claim exemptions for the 6.2 percent Social Security tax for hiring employees that were previously unemployed, as stated by the IRS. The act authorized the IRS to grant tax credits for those qualified employees who remained employed for a minimum of 52 consecutive weeks. Businesses could claim this credit, called the new hire retention credit, for 6.2 percent of wages that were paid during the qualifying 52-week period, capping at $1,000 per employee.
To have been considered a qualified employee, the individual had to have been unemployed for no more than 40 hours in the 60 days prior to being hired, according to the IRS. In addition, employers were not allowed to terminate a prior employee���s position to fill said position with a new qualified hire. In order to qualify for tax benefits, the prior position had to be vacated by an employee who left voluntarily or was terminated for cause.Learn more about HR