More Stimulus - Payroll Tax Exemption

In March, enactment of two health care reform laws overshadowed signing of another economic stimulus bill. On March 18, 2010, President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act (P.L. 111-147). The stimulus highlight is a payroll tax exemption (Social Security only) for employers who hire a new worker this year. This is an interesting policy approach for a few reasons. For example, a payroll tax credit benefits more employers that would an income tax credit. The payroll tax credit will benefit employers with a taxable loss and non-profits.

There is more in this stimulus bill, namely some significant new foreign reporting and withholding rules. So, all in all, more to keep tax advisers well-employed.

I've got a short article in this week's AICPA Tax Insider on the employer benefits in HIRE and some policy considerations of the approach and the Act - here.

More Stimulus - Payroll Tax Exemption 2010-04-17T17:51:00-07:00 Rating: 4.5 Diposkan Oleh: Unknown