HIRE Act
Hiring Incentives to Restore Employment (HIRE Act) - Employers are encouraged to hire previously unemployed individuals and may be eligible for tax benefits. Qualified employees must sign
W-11 Affidavit Form.
On March 18th, 2010, the Hiring Incentives to Restore Employment (HIRE) Act was signed into law by the President. This HIRE Act has two distinct measures that both encourage private sector & non-profit employers to hire unemployed individuals.
Part 1: Instant Payroll Credit for Employer’s Portion of OASDI
Under the HIRE Act employers are encouraged to hire previously unemployed individuals by exempting the employer’s portion of OASDI/Social Security tax liability for wages paid on after March 18, 2010 through December 31, 2010.
Part 2: Retained Worker Business Credit
Employers that hire new workers who qualify for instant payroll credit and keep said employee on the payroll for at least 52 consecutive weeks may be eligible for an additional tax credit for each of those qualifying employees. This new “Retained Worker Credit” will provide each business a credit for the lesser of $1,000 or 6.2% of wages paid to the employee during a 52 consecutive week period.
EMPLOYERS, USE FORM W-11 TO CONFIRM THAT AN EMPLOYEE IS A QUALIFIED EMPLOYEE UNDER THE HIRE ACT. Only employees who meet all the requirements of a qualified employee may complete the W-11 Affidavit.
Employer cannot claim HIRE Act benefits, including payroll tax exemption, unless employee completes affidavit.
A "qualified employee" is an employee who:
• begins employment with you after February 3, 2010, and before January 1, 2011;
• certifies by signed affidavit, or similar statement under penalties of perjury, that he or she has not been employed for more than 40 hours during the 60-day period ending on the date the employee begins employment with you;
• is not employed by you to replace another employee unless the other employee separated from employment voluntarily or for cause (including downsizing); and
• is not related to you. An employee is related to you if he or she is your child or a descendent of your child, your sibling or stepsibling, your parent or an ancestor of your parent, your stepparent, your niece or nephew, your aunt or uncle, or your in-law. An employee also is related to you if he or she is related to anyone who owns more than 50% of your outstanding stock or capital and profits interest or is your dependent or a dependent of anyone who owns more than 50% of your outstanding stock or capital and profits interest.
Click here to download the IRS FORM W-11
