Small Businesses Get Paid to Hire New Employees

As I write this, Congress is debating an extension of the payroll tax cut. Last I heard, Congress will extend the tax break for two months instead of for the entire year. The tax break will not encourage employers to hire more, but the extra money in people's pockets should help the economy, hence encourage employers to hire people to get the extra work done.

Small business owners are not left out. Several tax breaks exist to help defray the cost of hiring new employees and retain them. Credits are also available on health insurance premiums, pension plan start-up costs, Indian employment, and employer provided daycare. These and other credits are good discussion points with your accountant. If your accountant doesn't bring up these issues, ask. One credit, employer paid FICA on tips, is 100%.