So is this Hire An Employee Tax Credit all that it’s cracked up to be?

Short answer? No.

Longer answer? Probably not. I’m getting a lot of feedback from my business clients that they are starting to feel the benefit from the stimulus package, but new hires are still a ways off.

So this tax credit is almost a non-starter.

One client broke it down beautifully (as a matter of fact I’m totally going to start taking credit for this analysis!)…

By the time he pays for a new employee’s health insurance, payroll taxes, and CA worker’s comp insurance, this tax credit wouldn’t even begin to chip away at the cost of a new employee.

The government needs to understand that an employee’s salary is just the tip of the financial outlay for an employer.

And I can believe it!

In our office our health care costs went up again this year from 11% to 12%. That’s real money.

Real money I must pay out on my current employees that I can’t spend on hiring a new one.

What’s the answer?

I’m not sure, but this new tax credit was no bull's eye!