Deb Fortin, vice president of operations at ADP, talks about how the payroll giant has been adjusting its software to comply with the provisions of the HIRE Act, and how employers are already taking advantage of the new tax breaks for hiring and retaining new employees.

The Hiring Incentives to Restore Employment legislation was passed by Congress earlier this month and signed into law by President Obama on March 18 (see Obama Signs Bill to Provide Tax Cuts for Hiring).

The HIRE Act eliminates the current 6.2 percent employer Social Security tax for eligible new hires, generating immediate savings that will positively impact an employer's bottom line. In order to obtain the credit, it also requires any new hires to certify their previous employment status by signed affidavit. Additionally, companies are afforded either a significant income tax credit of $1,000 per qualifying worker once the worker is employed for at least 52 consecutive weeks, or 6.2 percent of wages paid to the qualifying worker over the 52-week period, whichever is less.

For clients of all sizes already using ADP payroll systems and whose new employees are eligible under the HIRE Act, ADP offers a service at no additional cost that will eliminate the employer-paid portion of the applicable Social Security tax for the benefit of the employer.

For more information, call 1-(888)-5ADP-SAVE, or visit www.adp.com to try out the service. Enter the date of hire of the employee and find out the savings for employers under the new legislation.

Other areas of interest

• Payroll