Apr 07, 2010

New IRS Form Available for Special Payroll Tax Exemption

The IRS has released and posted on its website a new form, Form W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee AffidavitThis form can be used by employers who want to claim the new special payroll tax exemption created under the HIRE Act (the Hiring Incentives to Restore Employment Act). To claim the exemption, employers must obtain a statement from new hires certifying that they were unemployed for 60 days or worked fewer than 40 hours during the 60-day period prior to being hired. The new Form W-11 can be used for this purpose. In order to claim the payroll tax exemption for new hires and the related new hire retention credit, employers must have this certification in their records--but they don't file the form with the IRS. The IRS also has FAQs about the payroll tax exemption and new hire retention credit posted on its website at www.irs.gov.