Five point six million workers added under Social Security tax break

[Omaha Steve]

http://www.laborradio.org/node/13962

Submitted by Jesse Russell on August 2, 2010 - 5:54pm
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Since a new tax break was offered to small businesses that hire unemployed workers – 5.6 workers have been added to company rolls – however, it isn’t clear how many of those jobs would have been created without the tax break. According to the Treasury Department the numbers are for February until June and will save the businesses $10.4 billion in taxes if they keep three fourths of the workers for at least a year. Under the program businesses that hire workers who have been unemployed for more than 60 days won’t have to pay the 6.2 percent Social Security tax until the next year. If those workers are held onto for a full year businesses will receive a $1000 tax credit. New York Senator Charles Schumer has called the program a success and will seek to have lawmakers extend the tax credit an additional six months.

[babylonsister]

1. That IS a BFD! Rec'd! nt

[Ichingcarpenter]

2. kick nominated thanks n/t

[Recursion]

3. Do the workers get credit with SSA as if the tax had been paid?

I mean, a job without the company's SS contribution is better than no job, sure, but it's a dangerous precedent IMO. Still, like I said, better than no job at all.

[Omaha Steve]

5. My understanding is the employee still gets a full credit on wages earned

No difference than working any other job.

[dkf]

4. Is this why social security is no longer running a surplus or are they considering it being paid

From the general fund.