IRS Issues Forms and FAQs on HIRE Act
2010 - 4/10 Mary Ellen Schill and Patrick J. Bodden

Back on March 19, we alerted our clients and friends about the new Hiring Incentives to Restore Employment (“HIRE”) Act, which grants employers a payroll tax exemption for wages and salary paid to previously unemployed individuals. See our previous alert here New Tax Incentives for Employers Who Hire in 2010.   On April 7, 2010, the IRS issued a new Form W-11 as well as FAQs which provide some welcome guidance on the HIRE Act. The Form W-11 serves as the employee affidavit which allows the newly hired employee to certify that he/she was “unemployed” for the 60 days prior to hire. The FAQs answer some common questions about the HIRE Act, including whether an employee rehired after layoff from the same employer can qualify for the payroll tax exemption. The answer to that question is yes, provided the individual was unemployed during the 60-day period. The FAQs also make it clear that recent graduates can qualify as well, as long as they were unemployed during the 60-day period prior to hire.

The FAQs on the payroll tax exemption and qualifying employers are found here.

The FAQs on “qualified employees” are found here.

The FAQs on how to claim the payroll tax exemption are found here.

The new form W-11 is found here.

Please contact Attorney Mary Ellen Schill or Attorney Patrick J. Bodden at (715) 845-4336 with any questions you have concerning this legal update

© 2010 Ruder Ware, L.L.S.C. Accurate reproduction with acknowledgment granted. All rights reserved.
This document provides information of a general nature regarding legislative or other legal developments. None of the information contained herein is intended as legal advice or opinion relative to specific matters, facts, situations, or issues, and additional facts and information or future developments may affect the subjects addressed.