Legislative
2010 HIRE Act

The 2010 HIRE Act Goes to Work


The 6.2% Employer Social Security Tax exemption applies to previously unemployed individuals hired after February 3, 2010 who have worked less than 40 hours during the 60-day period prior to employment and whose 2010 earned wages after March 18, 2010 and before January 1, 2011 do not exceed $106,800. If an otherwise qualifying individual earns more than $106,800, then the Employer Social Security Tax exemption only applies to the first $106,800 of qualifying wages. Other conditions may apply.

Additional Details: To qualify for the $1000 business tax credit, an employee must be hired after February 3, 2010 and employed for at least 52 consecutive weeks. Other conditions may apply. Wages paid to otherwise-qualifying individuals prior to enactment of the HIRE Act are still subject to the Social Security Tax. As part of this calculation, it is assumed that all February wages and half of March’s wages are subject to the Social Security Tax. Actual results may vary and may depend on when the HIRE is finally passed into law.

The 2010 HIRE Act has many dimensions, but it contains two critically import incentives for businesses to hire unemployed workers:

  1. Companies are exempt from paying their 6.2% portion of withholding taxes in 2010 for new employees hired between February 3, 2010 and Jan 1, 2011.
  2. Companies can receive up to a $1,000 tax credit for keeping the new employees they hire in 2010 on the books for at least a year.

A few key details:

  • Job seekers can qualify for HIRE Act benefits if they have worked up to, but not exceeding, 40 hours during the 60 day period proceeding their hire date.
  • For businesses to receive the $1,000 tax credit, the wages they pay a covered employee the second six months of their tenure must be at least 80% of the wages paid during the first six months of their employment.
  • Business owners can not take advantage of these benefits to hire relatives. Companies can not fire a current employee and hire a new employee covered by the HIRE Act to take the existing position, unless the original employee quit or was fired for cause
 
Respect Act
YOUR ASSISTANCE IS NEEDED!

The House of Representatives is poised to consider H.R. 1644, the Re-Empowerment of Skilled and Professional Employees and Construction Tradesworkers Act. This legislation, nicknamed the "RESPECT Act," would significantly affect the ability of HR professionals to manage their respective workforces.

The RESPECT Act would redefine "supervisor" under the National Labor Relations Act (NLRA), which is important because any employee deemed a supervisor is not covered under the NLRA and, accordingly, is not allowed to join a union. In fact, the NLRA permits an employer to intentionally exclude these employees from joining a union to ensure members of management do not become embroiled in strikes, contract disputes or other conflicts interest with their employer.
 
Paid Sick Day Act
Allows employees working in this state to receive paid sick days. Paid sick days provided for under this section shall accrue as determined appropriate by the employer, but not less than on a quarterly basis. Leave may be used as accrued or be loaned by the employer to the employee in advance of accrual by such employee. If the schedule of an employee varies from week to week, a weekly average of the hours worked over the twelve-week period prior to the beginning of a sick day payout shall be used to calculate the employee's normal work week for the purposes of determining the amount of paid sick days to which the employee is entitled.

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