The Internal Revenue Service (IRS) has made available Form W-11 (pdf), the Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit employees are to use confirm that they are “qualified” employees under the HIRE Act. An employer seeking to benefit from the HIRE Act’s payroll tax holiday or retention tax credit must have employees complete form W-11 or a similar form to attest that they began employment after February 3, 2010, and before January 1, 2011; have not been employed for more than 40 hours during the 60-day period ending on the date they begin employment with the employer seeking the HIRE Act benefits; are not being employed to replace another employee unless the other employee separated from employment voluntarily or for cause (including downsizing); and are not related to the employer seeking the tax benefit.

According to a press release, while employers need this certification to claim both the payroll tax exemption and the new hire retention credit, they do not file these statements with the IRS, but should instead retain them along with other payroll and income tax records.

For more information on how to benefit from the HIRE Act’s employment tax provisions, see Littler’s ASAP: HIRE Act Signed Into Law — What it Means to Employers Update – IRS Weighs in. Do you have shovel ready jobs? by GJ Stillson MacDonnell.

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