The IRS recently released Form W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit. The HIRE Act (H.R. 2847), a jobs bill President Barack Obama signed into law on March 18, 2010, provides tax breaks to employers that hire unemployed workers or individuals who were working only part-time in 2010. Under the HIRE Act, qualified employers could receive a payroll tax incentive and a general business tax credit.
Under the HIRE Act, employers may be entitled to the payroll tax incentive if they hire “qualified” employees. Under one of the requirements for an employee to be “qualified,” employers must receive a signed affidavit from a new hire that she hasn’t been employed for more than 40 hours during the previous 60 days (the 60-day period ends on the date the employee starts work). Employers can use Form W-11 to satisfy this requirement, and it can be located at www.irs.gov/pub/irs-pdf/fw11.pdf.
Most eligible employers can claim the payroll tax exemption on the federal employment tax return they file with the IRS (Form 941, Employer’s Quarterly Federal Tax Return). This form has been revised for employers to use starting with 2010’s second calendar quarter and is currently posted as a draft form at www.irs.gov/pub/irs-dft/f941–dft.pdf. The IRS has stated that it will release the final version of this form (along with instructions) next month.
Keep up with the latest legal changes in employer benefits with the Benefits and Compensation Law Alert and with changes in federal employment laws in the Federal Employment Law Insider.