INTRODUCTIONS : EMPLOYEE AFFIDAVIT (Form W-11)
Form W-11 is a United States Internal Revenue Service tax form used as an affidavit by an employee stating they were previously unemployed, allowing the hiring company to claim a tax credit. The tax credit falls under the Hiring to Restore Employment (HIRE) Act.
The Form W-11 can be obtained through the I.R.S’ website or by obtaining the documents through a local tax office.
The tax form is to not to be filed with the IRS, but instead is to be kept in the employment records of the company. The purpose of the form is to provide a sworn statement that an employee meets the qualifications for the tax credit claimed by the company.
1. First, ensure that the employee meets the criteria for the Hiring to Restore Employment Act before taking the credit and having the employee sign the affidavit.
2. In order to qualify, an employee must not have worked full time (40 hours a week) for the previous 60 day period before being hired. The employee could not have been hired to replace an existing employee and the new employee cannot be related to anyone with more than a 50% ownership.
3. If the employee meets this criteria, they must be provided the Form W-11.
4. The employee is to provide their name, social security number, first date of employment, and the name of their new employer.
5. The employee must sign and date the affidavit, swearing that they meet the qualifications for the tax deduction.
6. Once completed, the employer should keep the Form W-11 in the employment files. The file may need to be accessed if the company is audited or if the IRS does not accept a tax credit on your corporate income tax statement.
