The Internal Revenue Service (IRS) Wednesday released a draft of the new Form W-11, the affidavit individuals must complete to confirm that they are qualified employees under a new law that provides tax incentives for businesses hiring new workers.
Under the Hiring Incentives to Restore Employment (HIRE) Act, employers can receive an exemption from their 6.2 percent share of Social Security payroll taxes on wages paid to qualifying employees, effective for wages paid from March 19, 2010 through December 31, 2010. To qualify, employees must fill out the new Form W-11 under penalty of perjury to certify they have not been employed for more than 40 hours during the 60-day period they were unemployed.
The HIRE Act also provides an additional income tax credit of up to $1,000 for every new employee retained for 52 weeks.
The FAQs regarding the HIRE Act's employer tax benefits are available at IRS' Web site here.