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.

What Exactly is the W-11?

The W-11 is signed under penalty of perjury and states: “I certify that I have been unemployed or have not worked for anyone more than 40 hours during the 60-day period ending on the date I began employment with this employer.”

The W-11 instructions define “qualified employee” as one who:

• begins employment after February 3, 2010 and before January 1, 2011;
• certifies by signing the W-11 or similar statement that s/he has not been employed for more than 40 hours during the 60-day period preceding the date of hire;
• is not employed by the employer to replace another employee unless the other employee was separated voluntarily or for cause (including downsizing); and
• is not “related to you,” (defined to include “child or a descendant 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” or someone who 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”).