A Legislative “No-Brainer”
In a rare show of bi-partisan cooperation, the Alabama Senate gave final approval without dissent to the Reemployment Act of 2010. When Gov. Riley signs it into law, as he is expected, employers and the unemployed will both get a much-needed break.
The law will allow employers to deduct up to 50% percent of the gross wages paid to any employee hired off the unemployment rolls who is then employed full-time (37.5 hours weekly) for a full year. The one-time deduction can only be claimed after a worker has been on the payroll for a year. A job must pay at least $10 per hour to qualify for the deduction.
This is expected to reduce income tax liability of an employer by about $325 for each $10,000 in wages paid to a qualifying employee earning at least $14 an hour. There will be graduated deductions for 2011 and 2012 based on wages paid.
Obviously, this is good news for those workers on the unemployment line as well. With this substantial incentive to employers, a worker on the unemployment role is sure to move to the top of the list for a job opening.
Now, let’s just keep working on creating more of those job openings.
