Under the Hiring Incentives to Restore Employment Act (HIRE Act), employers who hire certain unemployed workers are allowed not to pay certain employment taxes. Employees are not eligible under the HIRE Act if the employee is “employed by the qualified employer to replace another employee of such employer unless such other employee separated from employment voluntarily or for cause.” Therefore, employers may not simply terminate employees and replace them with otherwise qualified individuals and qualify for the exemption. Contact Vision Payroll if you have further questions on the HIRE Act.