FORM W-11 Please click for form w-11.  Each new employee needs to complete . www.irs.gov/pub/irs-pdf/fw11.pdf Temporary Tax Credit for Retaining Qualified New Employees.  Above and beyond the temporary Social Security tax exemption explained above, employers can also claim a temporary new tax credit of up to $1,000 for wages paid to each qualified new employee, using the same definition as for the Social Security tax exemption. There are some additional requirements for the credit. The worker must be kept on the payroll for at least 52 consecutive weeks, and wages during the second 26 weeks of the 52-week period must equal at least 80% of wages paid during the first 26 weeks of that period. The credit amount equals the lesser of 6.2% of wages paid during the 52-consecutive-week period or $1,000. To claim the maximum $1,000 credit, the worker must be paid at least $16,130 during the 52-week period. The credit can only be claimed for the tax year ending after 3/18/10 during which the 52-week requirement is first met for the applicable worker. So, the credit is a one-time deal for each eligible worker, based on wages paid during the 52-week period that starts with the worker’s employment date. Because the 52-week requirement cannot be met until February of 2011 at the soonest, the credit can’t be claimed on a calendar-year 2010 return. Instead, you’ll have to wait until your calendar-year 2011 return is filed. If your business uses a fiscal tax year, you too will have to wait a while to collect your rightful credit. Even so, hiring a qualified new employee now and retaining that individual for at least 52 weeks can generate a credit that will eventually save taxes.