The Hiring Incentives to Restore Employment (HIRE) Act, passed last March, provides a credit to businesses that hired and kept a formerly unemployed worker on payroll throughout the year.
Businesses can apply for a 6.2% credit on wages paid to such employees, essentially offsetting the employer's obligation toward employee withholding.
According to the IRS, "In addition, for each worker retained for at least a year, businesses may claim an additional general business tax credit, up to $1,000 per worker, when they file their 2011 income tax returns".
