New HIRE Act gives employers tax breaks for hiring family members

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Would you like a tax break for hiring a worker—say, a student, or even your spouse or child?

Then Uncle Sam may have a deal for you.

In March, Congress passed the Hiring Incentives to Restore Employment — or HIRE — Act, but the law was overshadowed by the hubbub surrounding health-care overhaul.

The law is worth paying attention to because it applies broadly. In order to encourage hiring, Congress gave employers a new, temporary tax break. For any qualified hire after Feb. 3, the employer gets to skip paying 6.2% Social Security taxes on the worker’s wages from March 19 through the end of this year. The tax is computed on gross wages, so the savings on $40,000 of pay would be nearly $2,500.

Full story: Hire Your Kids, Get a Tax Break- WSJ