Plan proposes tax credit for new hires 2/2/10

As part of the President Obama's recent proposed job-creation plan, businesses and nonprofits would get a $5,000 tax credit for every new employee they hire in 2010. If a nonprofit or business increases the hours or wages of employees making less than $106,800, the employer would be reimbursed for the additional Social Security taxes incurred. The maximum benefit for any one employer would be capped at $500,000. The President's plan comes as Congress is considering other ways to support the nonprofit sector, which employs roughly 10% of the U.S. workforce. Last month, the Senate passed a health-care reform bill that would provide tax relief to help small employers - nonprofits and for-profits and for-profit businesses alike - offer health benefits to their employees. More info