Hiring Incentives to Restore Employment (HIRE) Act Employee Affidavit

On March 18, President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act into law. HIRE provides tax incentives for businesses that hire unemployed workers.

On March 31, the IRS issued a draft Form W-11 HIRE Act affidavit used to certify employee eligibility for the program. The IRS has now issued a final version of the W-11, available here and a new set of FAQs, available here.

Instructions to the Employer

Section references are to the Internal Revenue Code.

Purpose of Form

Use Form W-11 to confirm that an employee is a qualified employee under the HIRE Act. You can use another similar statement if it contains the same information as on the form and the employee signs it under penalties of perjury.

Only employees who meet all the requirements of a qualified employee may complete this affidavit or similar statement. You cannot claim the HIRE Act benefits, including the payroll tax exemption or the new hire retention credit, unless the employee completes and signs this affidavit or similar statement under penalties of perjury and is otherwise a qualified employee.

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.
  

If you are an estate or trust, see section 51(i)(1) and section 152(d)(2) for more details.

The Service has not yet addressed the issue of electronic signatures regarding this form; however since it is considered an act of perjury to make a false claim on the new hire affidavit, it would lead one to think they are NOT likely to accept electronic signatures.