The Hiring Incentives to Restore Employment Act (HIRE Act) was signed into legislation by President Obama in another effort to stimulate jobs growth in this still very sluggish economy. The Social Security Tax Credit portion of the HIRE Act is effective in 2010, with a maximum credit capped at $1,000 available against the employer's share of each eligible employee's Social Security Tax. The act also grants a $1,000 Retention Credit (general business tax credit) for employees hired in 2010 who are retained at least 52 consecutive weeks. Here are some of the key facts:

1.  Exempts employers from paying the employer share of Social Security employment taxes (6.2%) on wages paid in 2010 to newly hired qualified unemployed workers;
2.  Newly hired qualified unemployed workers are those who begin employment with the employer after February 3, 2010 and before January 1, 2011 and who were previously unemployed for 60 consecutive days prior to beginning work or who were employed for less than 40 hours during this 60 consecutive day period;
3.  Newly hired employees include employees who were not hired to replace existing employees (unless employee was terminated for cause or voluntarily terminate their employment;
4.  Newly hired employees include new college graduates;
5.  Newly hired employees include re-hired employees, who are otherwise qualified employees;
6.  The 60 day period includes employees who were unemployed for 60 days beginning on December 4, 2009;
7.  Eligible wages include wages paid to employees after March 18, 2010;
8.  Employers who qualify, are eligible for both the Social Security Tax Credit as well as the $1,000 Retention Credit;
9.  Qualified employees do not include family members;
10.  Increases the Section 179 First Year Expensing for fixed assets to $250,000 beginning in 2010;
11.  Employers claim the Social Security Tax Credit on form 941 beginning with the second quarter of 2010;
12.  Businesses, tax-exempt organizations and public college/universities qualify for the credit;
13.  Each employee must certify that they meet the 60 day test;
14.  Employers include new businesses, as long as the employee is an eligible employee;
15.  The Social Security Tax Credit does not apply to an employee who was hired to replace an existing worker, unless the existing worker was terminated for cause or terminated their employment voluntarily.