IRS Releases HIRE Act Affidavit Form

April 12, 2010 0 COMMENTS

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.

read more…

Employers May Be Eligible for Tax Break Under HIRE Act

March 24, 2010 13 COMMENTS

The Hiring Incentives to Restore Employment (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 only working part-time in 2010. Under the HIRE Act, qualified employers could receive a payroll tax incentive and a general business tax credit.

Payroll Tax Incentive

Under the Act, employers that hire new employees this year may be exempt from paying the 6.2 percent social security tax on wages paid to qualified employees after March 18, 2010, through December 31, 2010. An employee is “qualified” if she:

  • starts work after February 3, 2010, and before January 1, 2011;
  • certifies in a signed affidavit that she hasn’t been employed for more than 40 hours during the previous 60-day period (the 60-day period ends on the date the employee starts work);
  • wasn’t hired to replace another employee unless the other employee voluntarily left the position or was terminated for cause; and
  • isn’t a family member or other relative of the employer.

read more…