Whether or not you are a particularly competitive person, you have to admit that sometimes it just feels good to say “I’m first!” At Emerald Software, we are seriously competitive (that’s why we offer THE Best of Breed product in onboarding solutions). It won’t surprise you then that we are the first vendor in the industry to implement form W-11 in our automated onboarding software. We would have gotten it uploaded even faster if we hadn’t been waiting on the IRS to actually publish the darn thing!

What is the W-11?

It’s the affidavit some of your new hires could be signing under the March 2010 HIRE Act so you can claim your HIRE Act tax credits. Each qualifying new hire who was previously unemployed for at least the last 60 days makes you eligible for a payroll tax credit. The employer portion of Social Security taxes (6.2%) will be waived through the end of the year, and there’s no limit to the number of qualifying employees you can hire under this program.

If you keep these new hires employed for 52 consecutive weeks, you are eligible for an additional incentive. You can take a general business tax credit of up to $1000 for these employees in 2011. This credit applies to qualifying workers hired as early as February 3rd of 2009.

More Information on Qualified Individuals:

  • An out-of-work new hire only qualifies if the position he/she is filling was vacated voluntarily by the previous employee or if that employee was fired for cause.
  • Downsizing that occurred previously is considered “cause” under this definition.
  • The 6.2% payroll benefit only applies to the new hire’s first $106,800 in wages between now and 2011.
  • The new hire cannot be related to the employer (child, spouse, in-law, sibling, step sibling, parent, grandparent, and so forth)
  • The new hire cannot be related to anyone who owns a controlling interest in the company’s stock or capital.

There are (of course) additional rules about exactly how Payroll can go about applying these incentives. Here’s a good overview of how the process works.

Onboarding is the Easy Part

The W-11 is one of those forms you have new hires fill out and then retain in your records – you don’t have to send it to the IRS. Since we’ve already uploaded the W-11 to our forms library, it can be presented to your new hires during the regular onboarding process. The data on the completed forms can then be distributed to your Payroll department or vendor as part of your automated HR workflow.

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