Tax credits for hiring are good for businesses and the economy
Experts predict that small businesses will lead the economy toward recovery. SMBs have created 64 percent of net new jobs in the past 15 years, according to the Small Business Administration, and continued small business formation is needed to reduce the current unemployment rates.
In light of recent reports that business owners will receive a tax credit for hiring previously unemployed workers, the IRS website explains there has been an expansion to the existing credit for hiring unemployed veterans and certain youth. Business owners are eligible for benefits if they employ a person discharged from the military within five years of the hiring date.
Also, hiring a “disconnected youth” – a person between the ages of 16 and 24 who is unemployed and not attending school – can bring tax credits.
These measures may help business owners find additional funds this year, and they may help the nation’s unemployed find work. The country is in dire need of new jobs as the U.S. Bureau of Labor Statistics reports the national unemployment rate edged up to 9.9 percent in April.