New HIRE Act Tax Breaks for Employers

Complying with the Qualification and Documentation Rules for Hiring Unemployed Workers

Recording of a 110-minute CPE/CLE webinar with Q&A

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Conducted on Thursday, June 3, 2010

Recorded event now available

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Course Materials

This CLE course will provide tax executives and advisors with guidance on meeting the HIRE Act tax incentive compliance and documentation requirements, weighing the HIRE Act benefits against those offered by Work Opportunity Tax Credits (WOTC), and working with other company departments to plan an approach on new hires.


The Hiring Incentives to Restore Employment Act, or HIRE Act, signed into law on Mar. 18, 2010, offers U.S. companies a great opportunity to leverage tax breaks by hiring the unemployed—but includes significant new compliance and documentation responsibilities.

Employers are eligible to waive their share of Social Security FICA taxes for the rest of 2010, after hiring someone who had been unemployed most of the prior 60 days. Plus, a federal tax credit is possible if the company retains that new employee for a full year.

Tax specialists must become familiar with new documentation requirements, such as the IRS affidavit signed by new staff, and with details of recent IRS compliance guidance.

Listen as our panel of experienced federal tax specialists prepares you to evaluate the pros and cons of the new HIRE Act tax incentives—including whether it's more advantageous for your company to claim WOTCs instead on the same hire—and to handle all compliance and documentation requirements.



  1. Tax incentives for employment in the HIRE Act
    1. Limited Social Security payroll tax holiday for new workers
      1. Hirings must be between Feb. 3, 3011 and Jan. 1, 2011
      2. For-profit and non-profit, private sector employers and higher education institutions only
      3. Employees cannot have worked more than 40 hours during previous 60-day period
      4. No holiday for Medicare hospital insurance component of FICA
      5. Other federal or state unemployment, and state payroll, taxes are not affected
    2. Job-retention tax credit
      1. Company qualifies if formerly unemployed person is retained for at least 52 weeks
      2. Work Opportunity Tax Credit cannot be claimed on same hire
  2. Compliance and documentation requirements
    1. Employee affidavit for being unemployed (IRS form W-11)
    2. Credit for second-quarter OASDI taxes, if qualified employees began work before March 19
    3. March 29 IRS Q-and-A on who can be a qualified employee
    4. Other IRS guidance expected soon


The panel will address these and other key topics:

  • What employees qualify: When they must be hired, how long they must have been unemployed, what needs to be included in the IRS affidavit.
  • What employers qualify: Businesses that meet the standard, and what other federal and state tax obligations still must be paid.
  • Key guidance and documentation: March 29 IRS Q-and-A, model affidavit Form W-11, upcoming IRS guidance.
  • Evaluating HIRE Act tax benefits: Deciding between a WOTC and a job-retention credit, and meeting the opt-out provisions.


Ali Master
Ali Master
National Director of Business Incentives and Tax Credit Services
Ernst & Young

He joined the firm in 1985 and manages a team of about 200 who work on U.S. and international incentives for clients....  |  Read More

Cody Villella
Cody Villella
Senior Tax Associate, National Tax Group
RSM McGladrey

He consults with clients on tax credit and incentives projects and on complex positions for tax provisions and returns....  |  Read More

Peter Kulick
Peter Kulick

Dickinson Wright

His corporate client work includes federal tax planning and compliance, as well as use of federal and state tax credits...  |  Read More

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