By: Matthew Barrett Payroll 1 Follower

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There are two components to this bill:

· Social Security Tax Exemption – Qualifying employers will be exempt from the 6.2% employer portion of social security tax for qualified individuals hired between February 4 and December 31, 2010. Only social security taxable wages up to the wage base paid between March 19 and December 31, 2010 are eligible for the tax exemption. Qualified individuals must:    

o    be unemployed for at least 60 days before hire (and have worked no more than 40 hours total in that period), and

o    not be a family member or other relative of the business owner(s).

    Note: Qualified individuals can be either new headcount or hired to replace an individual who was separated from employment voluntarily or for cause.


· Tax Credit – An additional business tax credit for employers who have employed qualified individuals for 52 consecutive weeks will also be available. Employers may claim this credit on their 2011 income tax returns. The employer will be credited the lesser of:

o    $1,000 for each qualifying worker hired after February 3, 2010 and employed at least 52 consecutive weeks, or

o    6.2% of wages paid to qualifying workers over the 52‐week period.

If you have any questions please call me directly at 585-218-6058.

Matt Barrett
Paychex Inc.



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