The primary benefits of this Act are 1) the exemption from OASDI (Social Security) withholding tax for the remainder of 2010 for employers who hire folks who have been unemployed for 60 days prior to their hiring; plus 2) a tax credit for retaining those same employees for at least 52 consecutive weeks at the same level of pay or more.
The Act also extended one of the expired provisions from last year – known as a Section 179 expense limit, which is a special method of accounting for otherwise depreciable items via direct expense in the first year. This provision simply extended the more liberal limit from the previous year.
As always, consult your tax advisor for more information.
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