HIRE Act Employee Affidavit Form Now Available

The IRS just posted a new form--W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit--along with answers to frequently-asked questions about the HIRE Act.

The IRS explained in an alert issued today that the new law requires "employers get a statement from each eligible new hire, certifying under penalties of perjury, that he or she was unemployed during the 60 days before beginning work or, alternatively, worked fewer than a total of 40 hours for anyone during the 60-day period. Employers can use Form W-11 to meet this requirement."

Comments

[HRWatchdog]

In answer to Pam Marten's question:

"The link on the blog will take you to the most recent version of the form. The W-11 form was last updated by the IRS 6/2010."

Gail Cecchettini Whaley, CalChamber Employment Law Editor/Staff Counsel

[Pam Marten]

Has the HIRE Act W-11 form been revised for 2011?

[Mariya S.]

If a new employee was a 1099 contractor (self-employed) prior to beginning employment with our compaby are they an eligible employee for the HIRE Act?

REPLY from HR WATCHDOG: No.Only work performed as an employee counts in determining whether an individual has been employed for 40 hours or less during the 60-day period. (source: IRS.GOV, FAQs About Qualified Employees)

[Dawn Capp]

Application of the payroll tax exemption does not require that a qualified employee be employed for a set number of hours or a set number of weeks.

You may be eligible for the exemption if you have a qualified employee who has not worked more than 40 hours during the 60-day period before his or her employment begins.

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.

[Michelle Washington]

So with incentive anyone after 03/19/10 that has worked less than 40 hours a week can qualify as well?