business
IRS issues payroll tax exemption form for companies hiring previously unemployed
NEWS IN BRIEF — Posted April 19, 2010
The Internal Revenue Service has released one of the forms that employers need to claim some of the tax benefits for hiring those who have not been working for a while, according to a statement issued by the agency on April 7.
The Hiring Incentives to Restore Employment Act was passed on March 18. Employers that, between Feb. 3 and Jan. 1, 2011, hire employees who have not worked for more than 40 hours in the previous 60 days or more may qualify for a 6.2% payroll tax exemption.
Form W-11 is an affidavit signed by the employee that is to be kept in employers' files (link)
It is not sent to the IRS.
Form 941, Employer's Quarterly Federal Tax Return, will be used to claim the exemption and is currently available in draft form (link).
A final version is scheduled to be released in May.
An employer also can receive a credit of up to $1,000 per worker retained for at least a year. This will be claimed on 2011 tax returns.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2010/04/19/bibf0419.htm.
