Jobs Bill and SUB Plans = Payroll Tax Advantage

With the new Jobs Bill quickly advancing through the Senate, companies may anticipate payroll tax benefits for new employees hired through the end of 2010 through the "Hire Now Tax Cut" component of the bill.

Labor statisticians anticipate an employment rate hovering near 10% through the end of 2010. The government's proposed jobs bill, designed to spur hiring, should lower this rate somewhat while simultaneously allowing companies to recover through rehiring.

Involvement with a program providing tax advantages is always a good business recovery strategy. Yet if a payroll tax advantage is the main draw for companies to hire in this still stagnant economy, mightn't it be sensible for interested business to examine other avenues and adopt additional programs through which payroll tax savings may also be achieved? And achieved in a far more immediate timeframe? The cyclical nature of employment will still require layoffs even as companies rebound, and significant payroll tax advantages are allowable using SUB Plans during these layoffs.

Which, with a hovering unemployment rate, does seem a far more sensible business recovery strategy.