The state of Texas has initiated the Back to Work program that offers wage subsidy to employers that hire unemployed Texans through 28 work development boards and has set aside $15M for a period of two years. Businesses, small and large are offered a portion of new employees’ wages for a set period of time when they hire Texans currently receiving unemployment benefits. In addition, a wage retention bonus of up to @2,000.00 to employers who will continue to employ the formerly out-of-work workers for at least 120 days. To participate in this program, contact your local Workforce Solutions Center and full information is available at the TWC Web site http://www.twc.state.tx.us/news/txback2work.pdf
Effective March 18, 2010, the Federal government implemented the HIRE Act (Hiring Incentives to Restore Employment) that will provide two new tax benefits to employers. First, the payroll tax exemption which provides an exemption from the employer’s 6.2 percent share of social security tax on wages paid to qualifying employees, effective for wages paid from March 19, 2010 through December 31, 2010.
Secondly, the new hire retention credit, of 6.2 percent of wages paid to the qualified employee over the 52 week period, up to a maximum credit of $1,000, eligible to businesses for each qualified employee retained for at least 52 consecutive weeks. For details, follow link to http://www.irs.gov/newsroom/article/0,,id=223606,00.html
