On the surface, it appears that the economic recovery took a small step backward in the Indianapolis metro area in May. Dig deeper, an Indiana University researcher says, and the infantile recovery still seems to be cooking.
Matt Kinghorn of the Indiana Business Research Center in the Kelley School of Business allows that the region had 4,600 fewer
jobs in May than a year earlier, when the economy was still in decline. The figures were released today.
But the Indianapolis area looked good in May compared to April this year, Kinghorn adds. Only one other April-to-May transition
in the past decade saw a larger increase than the 13,500 additional jobs posted this year.
Tracking Indianapolis from month to month is tricky because the government doesn't adjust the figures for seasonal fluctuations.
However, he notes, even after accounting for the seasonal increase in such jobs as construction and the once-a-decade influx
of census workers, Indianapolis still generated jobs. Not many, but some.
An encouraging sign is the increase in temporary workers, often a sign companies are ramping up production. Some firms hire
temps to avoid committing to full-time workers until the economy firms up enough to justify the risk.
“It’s cautious optimism,” Kinghorn says. “We need to wait a little longer before we can say Indianapolis
has turned a corner.”
What are your thoughts?
Back to Top
IBJ Conversations
1 Comments
Add Comment
Employers are eligible for a payroll tax credit when the employer hires certain new employees after February 3, 2010, and before January 1, 2011.[5] In order to take the payroll tax credit, the employee must have either been unemployed for at least 60 days prior to hire or worked fewer than 40 hours for another employer during the previous 60 days.[6] Employers do not pay the employer portion of social security tax, which is 6.2 percent, on wages paid to eligible new hires.[5] In addition, employers receive a general business income tax break if the employer continues to employee the new hire for at least 52 weeks.[5] The tax break is the lesser of $1,000 or 6.2 percent of wages paid to the new employee during the 52-week period.[5] Household employers are ineligible for both tax benefits, as are new employees who are related to the employer.[7] Also ineligible are employees who earn more than $106,000 per year and employees who displace a current employee, unless the first employee resigned or was terminated for cause.[8] Employers may claim the credit after an eligible employee signs a statement affirming their previous unemployed status, such as Form W-11.[9][10]
The Act also extends the $250,000 deduction limit under section 179 through 2010,[11] authorizes $20 billion for highway and transit projects,[12] and makes reforms to municipal bonds.[1]
In order to offset the costs of the Act, there will be a 30 percent withholding tax on income from U.S. financial assets held by foreign banks who have not agreed to disclose their American account holders' balances, receipts, and withdrawals.[2] Owners of these foreign-held assets on their tax returns if they are worth more than $50,000.[2] Individuals who do not disclose these assets will be subject to a 40 percent penalty.[2] The Act also closes a tax loophole that investors had used to avoid paying any taxes on dividends by converting them into dividend equivalents.[13]