The Official Online Weekly Newspaper of NAHB
Enacted into law last month, the Hiring Incentives to Restore Employment Act establishes two temporary tax incentives for employers who hire and/or retain workers.
Most home builders are not hiring new workers at this time. According to data from the Bureau of Labor Statistics, more than 1.3 million jobs have been lost in the residential construction industry since the peak of employment in 2006. These job losses continue.
Nonetheless, some NAHB members may be hiring, and many others will continue to retain workers during 2010.
For these businesses, the following tax benefits are available:
- After Feb. 3, 2010 and through the end of this year, employers who hire workers who have been jobless for 60 days or more qualify for an exemption from the employer share of Social Security taxes paid after March 18, 2010 (6.2% of covered wages). Form W-11 is now available and should be used to certify new hires’ eligibility.
- In addition, for each worker retained for a least a 12-month period, businesses can claim up to a $1,000 tax credit when they file their 2011 income-tax return.
For more details from the IRS, click here.
For further information, e-mail Rob Dietz at NAHB, or call him at 800-368-5242 x8285.
Three New Biztools Business Guides Available Free to Members
Three new Biztools builder business guides ― created to help NAHB members manage their businesses more effectively and increase their profits — are now available free to members through the NAHB Web site.
The guides offer members tips on technology, business planning, how to ensure the financial health of their businesses and more.
Produced by NAHB's Business Management and Information Technology Committee and found in the business management resources section of the NAHB Web site, the new 2010 Biztools builder business guides include:
- “Business Management for Home Builders: Poising for Recovery as the Market Turns”
- “Financial Management for Home Builders: Measuring Key Metrics to Plan Your Path”
- “Information Technology for Home Builders: Using Technology to Better Market Your Business”
All three concise guides ― which include lists of other valuable NAHB Biztools resources ― are written by experts in the field and can be downloaded by members for free at www.nahb.org/bbg.
Free Earlier Edition Biztools Business Guides Also Available
The 2006, 2007, 2008 and 2009 Biztools builder business guides are all available free to NAHB members and can be downloaded from the NAHB Web site in a PDF format only.
To view or download these guides, click here.
Improve Business Operations With ‘Cost of Doing Business Study’
The “Cost of Doing Business Study, 2010 Edition,” available through BuilderBooks.com, enables home builders to compare their business operations with like-sized builders across the country so they can fine-tune their businesses and boost profits.
The study analyzes several operational business categories ― including volume, operation type and land vs. no land costs ― and enables builders to identify their strengths and weaknesses, increase efficiency, set realistic budget targets and improve business practices.
The categories have been analyzed, where applicable, by average and by the top and bottom 25% of performers by net profitability.
Builders can use the study to develop proven strategies to succeed in an increasingly competitive market.
To view or order the “Cost of Doing Business Study” online, click here, or call 800-223-2665.