The Jobs for Main Street Act, which we’ve been following from House to Senate to House, is now headed back to the Senate again. From the House perspective, the bill is known as the Hiring Incentives to Restore Employment (or “HIRE”) Act.
As I reported on February 24, HR 2847 was approved with amendments by the Senate and sent back to the House at that time. The House today passed an amended HR 2847 by vote of 217 to 201, sending it back the Senate again.
President of the WOTC Coalition, Paul E. Suplizio, informed Coalition members this evening that the House amended the bill to make it compliant with PAYGO and added a provision directing a portion of highway funds toward small businesses owned by disadvantaged individuals.
As I explained in a previous post, this bill will create a Payroll Tax Forgiveness program, (aka Payroll Tax Holiday) for employers who hire certain unemployed workers. Specifically, employers will enjoy a tax holiday eliminating the 6.2 percent employer tax expense on wages paid to qualifying employees after the date of the bill’s anticipated passage through the end of 2010.
“Unemployed” in this context means that an individual has worked no more than 40 hours during the 60 days prior to his or her start date with the new employer. The new worker must sign an affidavit stating as much, under penalty of perjury.
The bill also provides for a $1,000 income tax credit for employers if they retain these previously unemployed individuals for at least 52 weeks of employment.
The Senate is expected to vote on final passage of H.R. 2847 on Tuesday next week.
Amended Jobs Bill (HR 2847) Goes Back to the Senate
[…] Senate approved the amended HIRE Act, which had been passed back from the House on March 4th (see previous post). As you may recall, this bill includes a Payroll Tax Forgiveness program. For qualifying […]