New Web Page and Savings Calculator from Paychex Helps Businesses with HIRE Act
ROCHESTER, N.Y.--(BUSINESS WIRE)-- Business owners can learn more about the provisions and procedures of the new federal HIRE Act, as well as calculate potential savings, through a dedicated Web page hosted by Paychex, Inc.
The Web page provides the latest information available on the Act, and features an interactive calculator, which allows business owners to calculate their potential tax savings. Simply indicate the month of hire; type of pay (salary or hourly); and the annual salary or hourly wages, plus the hours per week. The calculator then computes the amount of the potential Social Security tax savings and business tax credit.
The HIRE Act--Hiring Incentives to Restore Employment--offers employment tax breaks for businesses that hire unemployed people, and extends further benefits to employers if those workers remain on the job for more than one year.
"Any company that is even considering hiring this year should learn about the impact that the HIRE Act will have on their tax obligations, and be confident that Paychex is here to help employers navigate the incentives provided by the Act," said Del Humenik, senior vice president of sales and marketing for Paychex. "The Act also is good news for the unemployed, because now organizations have additional incentives to hire them."
Employer benefits of the HIRE Act extend to organizations that take on people who have worked fewer than 40 hours in the 60 days before they are hired. There are two major tax incentives for employers:
-- Businesses save the 6.2 percent employer portion of the Social Security tax for any qualified individuals hired after February 3 and before January 1, 2011. The available break is up to $6,622.00 for each new employee, depending on wages paid. Wages paid between March 19, 2010 through December 31, 2010 qualify for the credit. -- Employers get a tax credit of up to $1,000 after one year of employment for each employee hired under the provisions of the Act. For the employer to claim this credit, wages paid during the previous 26 weeks must equal at least 80 percent of the worker's wages during the first 26 weeks of employment.
Paychex officials say that the Act does not place a limit on the total hires for each company, and it does not permit employers to terminate employees in order to make room for those who would enable companies to receive benefits.
For the latest on the HIRE Act, including the calculator to estimate potential savings, please visit www.paychex.com/hireact.
Paychex, Inc. (NASDAQ:PAYX) is a leading provider of payroll, human resource, and benefits outsourcing solutions for small- to medium-sized businesses. The company offers comprehensive payroll services, including payroll processing, payroll tax administration, and employee pay services, including direct deposit, check signing, and Readychex(R). Human resource services include 401(k) plan recordkeeping, health insurance, workers' compensation administration, section 125 plans, a professional employer organization, time and attendance solutions, and other administrative services for business. Paychex was founded in 1971. With headquarters in Rochester, New York, the company has more than 100 offices serving approximately 554,000 payroll clients nationwide as of May 31, 2009. For more information about Paychex and our products, visit www.paychex.com.
Source: Paychex, Inc.
Released April 9, 2010