ALBANY – If elected as Senator to New York State’s 57th Senate District, George Borrello announced Monday he will sponsor a bill that would assist small business owners with affording their first hire.
Borrello, current Chautauqua County Executive and the endorsed Republican, Conservative and Independence candidate for the State Senate’s 57th District, said the ‘First Employee Tax Credit Plan’ would assist single-owner start-ups to expand their operations and bring in their first employee.
Borrello said approximately half of the small businesses in New York State are sole proprietorships. Once a sole proprietorship moves to having paid employees, owners are responsible for workers compensation insurance and added business costs.
The candidate said his plan would give a state income tax credit to any business when it adds its first permanent payroll employee. In the first year, that credit would be 25 percent of the cost to employ that person (payroll, insurance, state and federal taxes) for the first year.
Borrello said the bill would lower to 20 percent the second year and 10 percent in the third year.
“For New Yorkers to succeed in our state’s economy, more and more people are starting their own small businesses. Rather than make it difficult for these new entrepreneurs to succeed, we must do more to make it easier,” Borrello said. “I’ve seen firsthand as a business owner that moving from a one-person operation to adding an employee is a major and costly step.”
“Since adding just one employee disproportionately increases costs, taxation, regulation and overall burden, I am proposing a First Employee Tax Credit,” Borrello added. “Not only will this help a one-person operation expand his or her business by reducing their cost, it’ll help more men and women find good-paying jobs.”
Borrello is running to fill the vacant 57th Senate District seat, which became vacant following Cathy Young’s retirement. He will face Republican challenger Curt Crandall in a June 25 primary. Whoever wins that election will face Democrat Austin Morgan in November.