In March, President Obama signed into law a watered down version of his much-touted Jobs Bill. The $17.6 billion initiative offers small business owners two tax breaks for qualifying new workers hired in 2010.

Under the new legislation, businesses will be exempt from paying their share of Social Security payroll taxes (generally 6.2% of an employee’s wages) for any new employee who has not worked within the previous 60 days. Moreover, if any of those new employees are retained for a full year, the business would receive an additional $1,000 tax break in 2011, or 6.2% of the wages paid to the employee in 2010, whichever is less. These credits are available to businesses of any size and can be applied to an unlimited number of employees.

But the big question is if this will really make a palpable difference for the average small business owner. Will these credits really tip the scales in favor of hiring for those small business owners who are “on the fence” about bringing in new workers?

I have my reservations. Bringing in another worker is a major investment, costing the employer much more than hourly wages or a salary. The true cost of a new employee includes a cocktail of fixed expenses, such as federal and state taxes, employee benefits (health insurance, life insurance, retirement savings accounts) and workman’s compensation, in addition to any added equipment and supplies, or resources. There are also numerous hidden or “soft” costs involved, such as the time and resources needed to train a new worker. This “loaded” rate of pay averages around 30% but in some instances can reach up to 40% of a worker’s base pay.

At a time when the economy is still far from a recovery, the incentives that Washington has introduced may not be enough to keep the majority of small business owners from ending up on the “wrong” side of the hiring fence.

Are there any small business owners out there who plan hiring now that the jobs bill has passed?

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