HIRE ACT BENEFITS EMPLOYERS WHO HIRE PREVIOUSLY UNEMPLOYED WORKERS.
     The Hiring Incentives to Restore Employment (HIRE) Act, enacted march 18, 2010, provides two new tax benefits that are available to employers who hire certain previously unemployed workers ("qualified employees").
     
     The first benefit, referred to as the payroll tax exemption, provides employers with an exemption from the employer's 6.2 percent share of social security tax on wages paid from March 19, 2010, through December 31, 2010.

     In addition, fro each qualified employee retained for at least 52 consecutive weeks, businesses will also be eligible for a general business tax credit, referred to as the new hire retention credit, of 6.2 percent of wages paid to the qualified employee over the 52 weeks period, up to a maximum credit of $1000.00.

     The IRS has developed a model affidavit, Form W-11, Hiring Incentives to restore Employment (HIRE) Act Employee Affidavit, for employers to use to have employees certify that they are "qualified employees" for purposes of the two tax benefits.  Employers are not equired to use Form W-11, though a similar statement certifying under penalties of perjury that the employee is a qualified employee is required in order to be eligible to claim the payroll tax exemption.  The IRS has also evised Form 941, Employer's QUARTERLY Federal Tax Return, to allow for employers to claim the payroll tax exemption.  In addition, the IRS has developed frequently asked questions (FAQs) about the payroll exemption and new hire retention credit, which will be updated as needed.  The new Form W-11, the revised Form 941, and the FAQs are all available on IRS.gov.