I'm familiar with WOTC/TJTC from days gone by, but I'm looking for some info on the new HIRE Act. My two questions are:

1. We're a non-profit. Is there a provision for NPs related to the tax credit part? Since we don't pay income tax, it sounds like we may not be eligible for that credit.

2. Is says the credits are not permitted for new hires brought on to replace another employee "unless such other employee is separated from employment voluntarily or for cause." How would that work if the new hire is replacing someone who was promoted? Do I get to pretend the new hire is actually replacing the person who left and created the opening the promotion filled?

Ackk! I need help!


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  • We are a non-profit as well and I assumed that there was no benefit to our organization through this program.

    If you find out differently, let me know. I believe there is a provision that allows you to deduct expenses for equipment which could be of interest to employers as well.
  • Here is the information that was sent out from our Accountants - and it does include Profit and Non-profit companies!! At the time it was awaiting the Presidents signature.

    Exempts qualified employers from paying the employer share of Social Security employment taxes on wages paid in 2010 to newly hired qualified unemployed workers.

    Qualified employers are both for-profit and non-profit, including public institutions of higher education, but excluding the U.S., state and local government or any instrumentality thereof (presumably schools).

    Qualified workers are workers who: (1) begin employment with the employer after February 3, 2010 and before January 1, 2011, (2) were previously unemployed and certify by signed affidavit that they have not been employed for more than 40 hours during the 60 day period ending on the first day of employment and (3) do not replace other employees of the employer unless the replaced employee separated voluntarily or for cause.

    The payroll tax relief applies only for wages paid with respect to employment beginning on the day after the enactment date (the date the HIRE Act is signed into law by the President) and before 2011. In addition, the Act is coordinated with the Work Opportunity Credit and such credit is not available for employees eligible for HIRE Act incentives unless the employer elects out of HIRE Act benefits.

    Provides employers with an up-to-$1,000 tax credit for retaining qualified unemployed workers eligible under the HIRE Act as noted above. The workers must be employed by the employer for a period of not less than 52 consecutive weeks, and their wages for such employment during the last 26 weeks of the period must equal at least 80% of the wages for the first 26 weeks of the period.
    For tax years beginning in 2010, boosts to $250,000 the maximum amount that can be expensed under Code Sec. 179, and boosts to $800,000 the beginning of the investment based phase out amount.

    The Act includes authorizations for numerous Highway and Public Transportation projects.
    The Act also increases disclosure requirements and penalties associated with foreign financial accounts and other foreign investments.
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