Companies who hire unemployed workers this year (after February 3, 2010 and before January 1, 2011) may qualify for a 6.2 percent payroll tax incentive. Employers can claim the tax credit on the federal employment tax return they file with the IRS.
The new law requires that the employer get a statement from each eligible new hire (W-11 attached) certifying that he or she was unemployed during the 60 days before beginning work or worked fewer than a total of 40 hours during the preceding 60-day period.
In addition to the payroll tax exemption, companies that retain their new workers for the entire year would be eligible for an additional business tax credit up to $1,000.
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If you have any questions, please feel free to contact Mike Nystrom at mikenystrom@mi-ita.com, or Keith Ledbetter at keithledbetter@mi-ita.com or call the MITA office at 517-347-8336.
