Small Business Tax Tip: Hiring Credits

The Hiring Incentives to Restore Employment (HIRE) Act, passed last March, provides  a credit to businesses that hired and kept a formerly unemployed worker on payroll throughout the year.

Businesses can apply for a 6.2% credit on wages paid to such employees, essentially offsetting the employer's obligation toward employee withholding.

According to the IRS, "In addition, for each worker retained for at least a year, businesses may claim an additional general business tax credit, up to $1,000 per worker, when they file their 2011 income tax returns". 

http://www.irs.gov/newsroom/article/0,,id=220326,00.html