Under the Hiring Incentives to Restore Employment Act (HIRE Act), employers who hire certain unemployed workers are allowed not to pay certain employment taxes. Employers who claim the exemption under the HIRE Act may not claim the Work Opportunity Tax Credit with respect to wages paid for which the HIRE Act exemption is claimed. The Internal Revenue Service (IRS) is authorized under the HIRE Act to prescribe the manner for making an election to have this section of the HIRE Act not apply. Employers who would receive greater benefit under the Work Opportunity Tax Credit should consider making the election. Vision Payroll strongly recommends that employers consult their income tax advisor before claiming the exemption or electing not to claim the exemption under the HIRE Act.