Actually – there seems to be one for Human Resource type people to know about – It’s a Social Security tax break for employers that hire the unemployed, says The Kiplinger Letter dated April 2010. They don’t have to pay Social Security tax on the wages of workers hired after Feb. 3, 2010, if the employee worked less than 40 hours in the previous 60 days. The exemption applies to wages paid after March 18, 2010, and before Jan. 1, 2011. But firms must still collect the worker’s 6.2% share of the tax and send it to the IRS, along with the employer and employee shares of the 1.45% Medicare tax. Also, if a new hire replaces someone…they must be a worker who quit or was fired for cause.
This is an incentive for firms to offer annuity options on workers’ 401(k) accounts. In a year or two, the IRS and the Labor Department will offer a safe harbor; protecting firms from worker lawsuits should an annuity provider with a high credit rating fail.
Won’t it be interesting to see how all this plays out over the next five years? Corporate America – Go give praise to your HR and Accounting employees. Shower them with appreciation on the front end. They will deserve it!
I’m open to your comments. What are the plus and minus factors? How are you getting prepared? Hmmmmm?
Everything that has a beginning has an ending. Make your peace with that and all will be well. – The Buddha