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Federal Employer Programs Not Stimulating Local Businesses

Programs designed to provide financial incentives to small businesses, don't appear to have much traction.

2010-08-18
OKLAHOMA CITY, OK, August 18, 2010 (Press-News.org) Core Business Services (Core), a leader in delivering small business accounting and financial services to Oklahoma for 15 years, recently released the results of it survey of their client's use of the new federal employment and health care incentives. Responding to the survey, only 12% of businesses surveyed said that they had hired, or planned to hire, any employees under the new Federal HIRE Act. The Act provides a credit to employers of up to $6,621 per employee for the hiring of new employees previously unemployed the last 60 days.

Additionally the survey showed that the vast majority of small businesses (75%) will make no changes to the health care coverage for employees based upon the recent Health Care Act. Although most small employers are potentially exempt from the new legislation (employers must have 50 employees or more to be subject to the new health care requirements), less than a third (29%) planned on being eligible for the credit for small businesses to provide health insurance to employees. This credit provides up to 35% for employer's portion of health insurance premiums paid.

"Clearly there is a disconnect between the law and its intended outcome." said Christian Brim, CPA, President of Core, "According to our survey, our clients are unwilling to hire additional employees in this economic environment, despite the incentives. A recent poll showed that 90% of our clients believe that we are still in a recession. They overwhelmingly are still in a defensive posture, this despite being in one of the most stable markets in the country."

Core Business Services helps small businesses make and keep more of their money by providing a full range of accounting, financial, tax, and payroll services. With offices in Oklahoma City, Lawton, and Tulsa, they serve all types of small and medium sized businesses. For more information visit http://www.coregroupus.com.

Core Group | Provides Accounting Services, Accounting Services Oklahoma, Tax Preparation and Planning, Payroll Services, Bookkeeping Services, Quickbook Services located in Oklahoma


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[Press-News.org] Federal Employer Programs Not Stimulating Local Businesses
Programs designed to provide financial incentives to small businesses, don't appear to have much traction.