Last week, we told you about the affidavit staffing firms need to produce when hiring new employees under the new HIRE Act. This week, the U.S. Internal Revenue Service released Form W-11, the Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit. The HIRE Act is a new law that provides a temporary payroll tax holiday to companies that hire previously unemployed workers during 2010. The IRS form will help employers claim the special payroll tax exemption. The form should be used to confirm that a new hire is a “qualified individual” under the HIRE Act. An employer cannot claim HIRE Act benefits unless the employee completes and signs the affidavit or similar statement. Under the new law, a qualified individual is defined as a person who begins employment after Feb. 3, 2010, and before Jan. 1, 2011; has not been employed for more than 40 hours during the preceding 60-day period before the employee begins employment; is not being employed to replace another employee except one who quit voluntarily or who was fired for cause (including downsizing); and is not “related” to the employer under rules set forth in the U.S. tax code. The IRS does not require employers to submit the affidavits but states that employers should keep them with their payroll and income tax records. The Form W-11 affidavit is available at /irs.gov http://www.irs.gov/pub/irs-pdf/fw11.pdf along with answers to frequently asked questions http://www.irs.gov/businesses/small/article/0,,id=220745,00.html about the payroll tax exemption and the new-hire retention credit.
IRS Publishes HIRE Act Affidavit
Last week, we told you about the affidavit staffing firms need to produce when hiring new employees under the new HIRE Act. This week, the U.S. Internal Revenue Service released Form W-11, the Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit. The HIRE Act is a new law that provides a temporary payroll tax holiday to companies that hire previously unemployed workers during 2010. The IRS form will help employers claim the special payroll tax exemption. The form should be used to confirm that a new hire is a “qualified individual” under the HIRE Act. An employer cannot claim HIRE Act benefits unless the employee completes and signs the affidavit or similar statement. Under the new law, a qualified individual is defined as a person who begins employment after Feb. 3, 2010, and before Jan. 1, 2011; has not been employed for more than 40 hours during the preceding 60-day period before the employee begins employment; is not being employed to replace another employee except one who quit voluntarily or who was fired for cause (including downsizing); and is not “related” to the employer under rules set forth in the U.S. tax code. The IRS does not require employers to submit the affidavits but states that employers should keep them with their payroll and income tax records. The Form W-11 affidavit is available at /irs.gov http://www.irs.gov/pub/irs-pdf/fw11.pdf along with answers to frequently asked questions http://www.irs.gov/businesses/small/article/0,,id=220745,00.html about the payroll tax exemption and the new-hire retention credit.