The Jobs Bill & You

Senate passes hiring incentives. A measure designed to provide financial incentives for companies to hire new employees looks set to pass the Senate, after five Republicans, including newly elected Senator Scott Brown, crossed party lines and voted with the Democrats. The New York Times, which carries the news, calls it “a glimpse of bipartisanship.” The bill, assuming it passes today and is reconciled with a House version, would give companies that hire unemployed people an exemption from payroll taxes this year. Meanwhile, companies that keep a new worker for more than a year will receive a $1,000 tax credit.

The measure now goes to the House, where Democratic officials have said they would like to move it rapidly to President Obama’s desk to allow them to claim one of their first significant achievements of the year.

As part of the President’s job-creation plan, businesses and nonprofits would get a $5,000 tax credit for every new employee they hire in 2010. If a nonprofit or business increases the hours or wages of employees making less than $106,800, the employer would be reimbursed for the additional Social Security taxes incurred. The maximum benefit for any one employer would be capped at $500,000.

The President’s plan comes as Congress is considering other ways to support the nonprofit sector, which employs roughly 10% of the U.S. workforce. Last month, the Senate passed a health-care reform bill that would provide tax relief to help small employers - nonprofits and for-profit businesses alike - offer health benefits to their employees.

Source: Inc.com