President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act into law March 18. The law provides tax incentives to employers that hire and retain previously unemployed workers. The HIRE Act has two main provisions that encourage employers to hire unemployed workers. The first provision is a payroll tax exemption. The second provision is a tax credit. All private employers are eligible for these tax incentives.
Social Security Tax Exemption
Employers will be eligible for a Social Security tax exemption if they hire a new employee between February 3, 2010, and January 1, 2011, who (1) was previously unemployed and (2) does not replace another employee of the employer. Employers that qualify for this tax exemption are not required to remit their share (6.2 percent of the first $106,800 of wages) of the Social Security taxes for the new employees in 2010. To receive the exemption, a newly hired employee must sign an affidavit stating that he or she has not been employed for more than 40 hours during the preceding 60 days. The exemption has no cap or limit as to the total amount of tax benefits that can be claimed by an employer.
Income Tax Credit
To encourage employers to retain these previously unemployed workers, the HIRE Act also provides a tax credit for each new worker who remains employed for at least 52 consecutive weeks. The tax credit is the lesser of $1,000 or 6.2 percent of the wages earned by the employee during the 52-week qualifying period. The new employee must be employed for the full 52 weeks to qualify for this credit (i.e., partial credits are not available). In addition, the worker's wages during the last 26 weeks must be equal to at least 80 percent of what he or she earned during the first 26 weeks.
The HIRE Act provides significant tax benefits for employers that hire previously unemployed workers. For more information on the HIRE Act, contact one of the Day Pitney LLP labor and employment attorneys.
Day Pitney Alert
Eric Sussman authored an article, "Conn. High Court Sheds Light on 'ABC' Test Application," which was published by Law360.
Patrick McCarthy and Christopher Stracco spoke about Project Labor Agreements on Friday, February 10, at the New Jersey Institute of Continuing Legal Education's Annual 2017 Redevelopment Law Institute at the Renaissance Woodbridge Hotel in Iselin, New Jersey.
On January 17, John DeSimone and Heather Weine Brochin presented a discussion about employment agreements and negotiation strategies at the NYU School of Medicine.
On October 10, James Bowers will share his personal perspectives on the History of Slavery and Race in South Carolina at UConn School of Law.
Michael Furey was quoted in an article, "The Biggest New Jersey Cases of 2016," which was published in Law360.
Michael Furey was quoted in an article, "NJ Panel Grills Hospitals Over Discovery In Horizon Row," in Law360. Day Pitney is representing five New Jersey hospitals in a lawsuit against Horizon Healthcare, relating to its new, multi-tiered health plan called OMNIA. Furey advocated on behalf of the five hospitals on Wednesday before a New Jersey appeals court that Horizon should turn over a consultant's report and certain agreements relating to how Horizon categorized hospitals under its controversial OMNIA Alliance program and the impact of OMNIA on the hospitals. These Tier 2 hospitals are alleging various claims, including breach of contract and citing concerns that being ranked in the lower tier of the program will cost them business. Horizon contends the sought-after materials, including a financial analysis, strategic alliance agreements and rate agreements between the insurer and OMNIA network hospitals, contain trade secret and confidential information. "If we're going to prove our hospitals should be Tier 1 alliance members, we need the documents and the information," Furey said.
Hartford, Conn., May 26, 2016 - Day Pitney LLP is pleased to announce that Employment and Labor attorney Albert Zakarian has been chosen as a Lifetime Achievement winner of The Connecticut Law Tribune’s second annual Professional Excellence Awards 2016. The Professional Excellence Awards 2016 recognize 28 lawyers, who were chosen from over 60 nominees, as either Lawyer of the Year or Lifetime Achievement recipients, according to The Connecticut Law Tribune. The Lifetime Achievement Awards honor "attorneys who have excelled over a career."
John McLafferty was quoted in an article, "Final overtime regulations less drastic than feared," in Massachusetts Lawyers Weekly. In the article, McLafferty discusses how the Department of Labor’s final revised federal overtime regulation will impact businesses. "The reality is that the rule made more people eligible for overtime; it didn’t create any obligation for employers to pay more overtime," he said. McLafferty added that the regulation’s impact on employees could have a wider effect on office culture and policies, which may affect a company’s ability to attract and retain workers. In addition, he noted that employers should take this opportunity to ensure that all of their employees are properly classified for overtime purposes.
Albert Zakarian has been chosen as a winner of The Connecticut Law Tribune's second annual Professional Excellence Awards. The awards recognize two dozen lawyers for outstanding service to the profession during their long careers. The publication received more than 70 nominations. Profiles of awardees will appear in the Law Tribune in May. An event will also be held in May to recognize the winners. More about the awards can be found here.