Tax Credit for Hiring the Unemployed

However, don’t let the headline get in the way of hiring the best individual for your company. The article’s catchy subtitle implies a tax credit available of $7,621.60. What’s the catch? This credit assumes you offer this new employee a salary of $106,800. (Or $8,900 per month, $2,088 per week or $52 an hour.) If your company can afford this, go for it, but let’s bring this down to the real world.

 This credit covers your portion of the FICA employee taxes. (You know, 6.2% for Social Security and 1.45% for Medicare.) So if your offer is for $30,000 a year, your credit is $2,295. Not exactly chump change and it does lower your operating costs. However, the reason for increasing your staff is to meet the needs of your customers, improve operations, increase sales, and, oh yeah, make money for your company.

One quote has stuck with me over the past year. “Hire slow, fire fast.” Do you have an up to date job description for this position? What exactly do you need this person to do? How do you want him or her to represent your company? 

Here is another quote from years ago. “Hire people that are smarter than you?” This does not mean you are looking for a genius; you want someone that complements you and your team. Try to determine any gaps or weaknesses and then seek out someone who can fill the need. I’m an introvert, numbers oriented, detail type of guy. I’m good when working with individuals, customer service, small groups, paperwork and crunching numbers. Send me out to do outside sales and I crash and burn. To complement my strengths, you should look for an extrovert, relationship oriented individual who is willing to make 50 cold calls a day, generate two leads and is happy with the results.

We are living in ‘interesting times’. We are asked to do more with fewer resources. Our customers want better, (read lower), prices. Our vendors are announcing price increases. We will survive and eventually thrive. Take advantage of this new program if you can, but don’t let it be a primary motivation when you make an the decision to hire your next staff member.

 Jeff Schnepper posted an announcement on his blog earlier this week. (You can read the post via this link: http://articles.moneycentral.msn.com/Taxes/blog/page.aspx?post=1727501&_blg=1,1727443.)

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