Tax benefits for hiring new employees are now available. An employer who hires an unemployed worker after February 3, 2010 and before January 1, 2011 may qualify for a 6.2% payroll tax incentive. This, in effect exempts them from their share of Social Security for wages paid after March 18, 2010.

In addition the business can get a tax credit of up to $1,000.00 per worker who is retained for at least a year on their 2011 income tax return.

To qualify employers must get a statement form each new hire certifying that they were unemployed during the 60 days before beginning work or worked fewer that a total of 40 hours in that same time frame.

Call if you have any questions or visit www.IRS.gov.

January 1, 2010 brings new mileage rates for the use of cars, vans, trucks, etc.

50 cents per mile for business miles driven.
16.5 cents per mile driven for medical or moving purposes.
14 cents per mile driven in service of charitable organizations.

A little known law has come to our attention in the State of Vermont. If you employ someone that is 16 or 17 years of age and is still in high school you do not have to pay them state minimum wage. You do however, have to keep there rate of pay at least equal to that of the federal minimum wage. As of this moment the federal minimum wage rate is $6.55 an hour compared to the State of Vermont’s minimum wage of $8.06. As of July 1, 2009 the federal minimum wage will increase to $7.25 an hour. As soon as the minor graduates or leaves high school they automatically must have their wages increased to meet that of Vermonts minimum wage.