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Supervisors debate two payroll‑tax measures: small‑business health credit and new‑jobs exclusion

San Francisco Board of Supervisors — Budget & Finance Committee · February 24, 2010
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Summary

The committee extensively debated two proposed payroll‑tax relief measures: a $2,000 one‑time payroll tax credit for small businesses that comply with the Health Care Security Ordinance, and a broader payroll‑tax exclusion to spur hiring. Analysts warned of sizable general‑fund costs and urged further tailoring and enforcement capacity before adoption.

The Budget & Finance Committee spent the bulk of its Feb. 24 agenda examining two related but distinct proposals to use payroll‑tax policy to help San Francisco businesses during the downturn.

Item 1 — the small‑business payroll tax credit — would provide a one‑time $2,000 payroll‑tax credit for businesses with 20–49 employees that demonstrate compliance with the city’s Health Care Security Ordinance (HCSO). Jennifer Entine Matz of the Office of Economic & Workforce Development said the credit equates to exempting roughly $133,000 of payroll from the payroll‑expense tax and argued the measure is a targeted “carrot” to encourage compliance and help small firms that face…

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