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Tax Breaks for Hiring New Employees Give Companies Something to Strive For

In a move that can only be called an attempt at shock and awe for our economy, President Obama signed a .6 billion job bill into law today. Thought to encourage employers to hire more workers and eventually improve our nation’s economic crisis, the bill falls short of initial incentives that were encouraged by Capitol Hill lawmakers.
 
The bill offers the following two tax breaks for companies:
 
1.       Exemption from paying Social Security payroll taxes on new workers who were unemployed in the prior 60 days.
2.       Retention of the new employee for 12 months will result in an additional ,000 back on its 2011 tax return (or 6.2% of the wages paid in 2010 – whichever is less).
 
Though the cost of the incentive program is expected to reach billion over the next 10 years, "This tax cut will be particularly helpful to small business owners," Obama said as he signed the bill. "Many of them are on the fence right now about whether to bring in that extra worker or two, or whether they should hire anyone at all. This jobs bill should help make their decision that much easier."
 
Companies who plan to take advantage of the new tax breaks for hiring more employees can expect to gain better productivity and larger tax breaks, or more in their pockets. As a result, they will have more funds available to continue expanding their operations and hopefully become more profitable.
 
Tips for Employers Utilizing These New Tax Break Incentives
 
·         Refresh your managers and Human Resource Department staff on company policies and procedures.
·         Make sure each department has an operations manual for new hires to help them learn their jobs even faster and increase retention rates.
·         Schedule weekly staff meetings within departments to foster a community-like atmosphere and keep employees up to date on company happenings.
·         Implement training procedures that will train new hires the fastest and most effective way possible; training videos are easy to make and extremely effective.
·         Be sure to find an employment screening company to check your new hires for resume falsification, perform a criminal background check, and verify their education and qualifications.
 
Some Small Business Owners Aren’t Buying It
 
In a story that ran on CNNMoney today, real estate business owner Volley Goodman shared his concerns regarding the tax break incentives. “I have to use everything that I make to pay overhead and business expenses, and I cannot do the online advertising I would like to do," Goodman said. "You have to think, most people are suffering from declines — they are not looking to hire new people."
 
Not Everyone Sees Doom and Gloom
 
Nonetheless, for those companies who feel that these tax breaks will be a boost to their business, optimism is high. One entrepreneur featured in the story story said, "Depending on how much they let us write off, it makes a big difference," he says. "I can use my profit to expand. I am trying to do it without a line of credit. We are doing it by our bootstraps."
 
…Better get ready for your new hires by finding a reputable employment screening company to do the legwork for you like checking for resume falsification and running a criminal background check!
 
Try AccuScreen and see how over 15 years of experience makes all the difference in who you hire and your retention rates.
 
 

 

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