IRS Issues HIRE Act Final Form W-11 and New Q&As

April 8, 2010

Employers may now access the final version of Form W-11, “Hiring Incentives to Restore Employment (HIRE) Act Affidavit” on the IRS website. This form can be used to confirm that an employee is a qualified employee under the HIRE Act.

A new set of HIRE Act Questions and Answers for Employers is also available on the IRS website. In addition to addressing general questions regarding the payroll tax exemption, the new Q&As address specific questions about which employees qualify and how to claim the payroll tax exemption.

The IRS issued a draft Form W-11 on March 31. See IRS Issues Draft Form to Certify Qualified Employees Under HIRE Act. See also IRS to Issue HIRE Act Final Form W-11 Week of April 5.

On Mar. 18, 2010, President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act into law, providing tax incentives for businesses hiring unemployed workers and extending hiring deduction limits for small businesses that make capital improvements. See HIRE Act Provides Tax Breaks for Hiring Unemployed Workers.