Monday, September 20, 2010

Trading Assistant Program on Amassco


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The Americans Want to Work Act (S.3706)
The Americans Want to Work Act provides jobs and security for the hardest hit Americans. Currently, over 14.6 million Americans are out of work, a national crisis. During this unprecedented time, we must incentivize business to create jobs and provide a bridge until job seekers can find work. The Americans Want to Work Act does both by:
  • Creating an additional tier of benefits for those who have exhausted their unemployment insurance;
  • Extending the successful HIRE Act payroll tax exemption through the end of 2011;
  • Doubling the general business tax credit to encourage businesses to hire the hardest hit Americans.
Tier 5 – Unemployment Insurance
  • What it Does: Provides 20 weeks of additional unemployment insurance for states with 7.5% or higher unemployment. This tier will benefit the people who have exhausted all of their benefits.
  • Retroactive Eligibility: Would apply retroactively to everyone who has exhausted all of their previous tiers in recent months. However, benefits would not be paid retroactively. (Example – If you exhausted your benefits 3 months ago, you would be eligible to begin your Tier 5 at the date of enactment. You would not, however, be paid out for the 3 months in which you did not receive benefits. If you are going to exhaust your benefits in 2 weeks, you will move right onto Tier 5 and receive your 20 weeks).
  • Requirements: People who are unemployed still need to meet current UI law requirements such as job searches.
One Year Extension of the HIRE Act Payroll Tax Exemption & Incentives for Businesses to Hire the Hardest Hit Americans
  • HIRE Act Background: The HIRE Act, signed into law earlier this year, provides two new tax incentives for employers to hire unemployed workers. Under the HIRE Act, businesses that hire Americans who have been out of work for at least 60 days are exempt from paying their 6.2 percent share of Social Security payroll taxes for all new hires up to the FICA wage cap of $106,800. To promote long-term employment, the HIRE Act also provides an additional $1,000 general business tax credit for each worker retained for at least one year.
  • Americans Want to Work Act Provisions: The bill includes two key provisions that apply to all states:
    •  Extends the successful HIRE Act Payroll Tax Exemption for one year, through the end of 2011.
    • Doubles the general business tax credit, from $1,000 to $2,000, for businesses that hire (and retain for 52 weeks) someone who has exhausted all unemployment benefits. This is applicable to anyone who has exhausted all unemployment benefits or that is eligible for Tier 5. This would be effective at the date of enactment.
  • Evidence the HIRE Act Payroll Tax Exemption is Working: Recent reports from the Treasury Department show that from February to June of 2010, businesses hired approximately 5.6 million new workers who had been unemployed for eight weeks or more.  Businesses have already received potential tax savings of $10.4 billion ($6.2 billion in payroll tax reductions, $4.2 billion in tax credits) from the HIRE Act Payroll Tax Exemption.
 

 




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