Bonanza?

Possible tax-break bonanza for Cape businesses that hire a lot of students and other seasonal workers:

Employers who hire people who worked for a total of less than 40 hours in the previous 60 days can get an exemption from the 6.2% social security tax that would otherwise be due on the employee's wages. This is effective for wages paid from March 19, 2010 to December 31, 2010. The employee must start working after February 3, 2010.

People who were in school during the previous 60 days are not disqualified, and there is no minimum age.

New hires who qualify must fill out form W-11 (or equivalent) to enable the employer to take the credit. The credit will be claimed on form 941 starting with the second quarter of 2010.

The exemption is for the employer's matching 6.2% and does not affect the 6.2% withheld from the employee's pay.