Steps to claiming a HIRE Act Credit
The HIRE Act requires that employers get a signed statement from each eligible new hire, certifying under penalties of perjury, that he or she was not employed for more than 40 hours during the 60 days before beginning employment with that employer. Employers can use new Form W-11, Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit, released last month, to meet this requirement. Though employers need this certification to claim both the payroll tax exemption and the new hire retention credit, they do not file these statements with the IRS. Instead, they must retain them along with other payroll and income tax records.
Employers should follow these steps to claim the credit:
- Download a W-11 form, distribute to employees hired after 03/18/2010.
- Collect signed forms from eligible employees.
- Update the IHR Workforce portal with employee eligibility. See instructional video
- Fax a copy of the completed W11 forms to Inflection HR so they may be attached to the employees digital personnel file OR scan and save a copy of the W11 form to the employees personnel file.
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