On March 18, President Obama signed H.R. 2847, carrying the Hiring Incentives to Restore Employment (HIRE) Act into Law. One of the biggest benefits of the Bills is the payroll tax holiday provision.
Under this provision, the OASDI tax (6.2% of taxable wages) on employers doesn’t apply to wages paid by a qualified employer with respect to employment during the period beginning on Mar. 19, 2010 (day after enactment) and ending on Dec. 31, 2010, of any qualified individual for qualifying services. In addition, there is up-to-$1,000 credit for “retained workers” who remain employed by the employer for one year. More details