Provisions of proposed jobs bill could have impact on businesses

When the U.S. Senate returns to session Monday, February 22, 2010, the expectation is that the Senate will deliberate the streamlined jobs bill submitted by Senator Harry Reid on February 11, 2010. Below is a brief list of key provisions that might impact you and your business.

• For wages paid after the enactment date until December 31, 2010, the bill includes an exemption from Social Security payroll taxes for employers that hire workers who have been unemployed for at least 60 days and are not individuals replacing another employee unless the separated employee left voluntarily or was dismissed for cause. Th is provision provides a maximum value of 6.2% of wages up to the FICA wage cap.

• For any tax year ending after the enactment date, the bill includes a $1,000 business credit for unemployed individuals hired by an employer on any date during the tax year, provided:

- employees work for a period of not less than 52 consecutive weeks; and

- wages for such employment during the last 26 weeks of the period equaled at least 80 percent of wages for the fi rst 26 weeks of the period.

• The bill extends to 2010 (an eff ective date of January 1, 2010) the higher expensing provisions so that taxpayers can write off up to $250,000 of certain capital expenditures (subject to phase out of total expenditures exceeding $800,000 for 2010).

CONTACT US

We will continue to monitor the progress of this new, possible legislation. Please contact us at (573) 442-6171 or (573) 635-6196 if we can address any questions.

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