A Great Nudge for a Potential Boss
If a potential employer asks you to "Give me ten good reasons why you should get this job," thanks to the recently passed HIRE Act, you can now give up to 6,621.00 good reasons. That's the size of the tax break a company could gain by hiring you.
The HIRE Act was passed in March to give employers an incentive to add new employees to their payrolls. If they hire an "eligible worker" (someone who has been out of work for at least 60 days) now through the end of this year, they won't have to pay Social Security taxes on the new workers' compensation. This equals about 6.2 percent of the new worker's wages.
There are quite a few small business owners who are not aware of how this works. Why not take the opportunity to inform them? Is there a company you've interviewed with and you haven't heard back from them? Is there a small business you'd like to work for, and you think they might be on the verge of hiring? Why not send them a little nudge like the following:
Great news! Did you know that if you hire me before the end of the year, you'll be eligible for a substantial tax break? Since I've been out of work for more than 60 days, the government will pick up my Social Security Tax through the end of the year. And this would apply to both full- and part-time positions.
You also might qualify for a Work Opportunity Tax Credit (WOTC) for employers who hire certain disadvantaged workers. In most cases, the credit is 40 percent of the first $6,000 of wages, or $2,400.
There is no limit on the number of workers that create this credit for you.
Then there's the Retained Worker Credit. If you keep my on your payroll for at least 52 consecutive weeks, you could get a credit of either $1,000 or 62 percent of wages paid during the 52-week period (whichever is less). In effect, any new employee who earns more than $16,130 during the 52-week period would entitle you to a full $1,000 tax credit.
I understand that these tax breaks don't offset all the costs of hiring me, but I'm hoping you'll appreciate my resourcefulness in bringing them to your attention. I look forward to chatting with you about some of the other ways I can add to your company's profitability.
All the best,
Now if this seems a bit forward to you, remember, drastic times call for drastic measures. How is being reserved working for you? Besides, I called up several small business owners who were thinking of expanding, and asked them if they were aware of the HIRE Act tax breaks. Every single one of them said they'd heard about them, but didn't know much about them, and asked me to explain it. Why not give it a shot? It couldn't hurt.