Form 5884-B New Hire Retention Credit

Form 5884-B - New Hire Retention Credit

Form 5884-B 2010

Form 5884-B - New Hire Retention Credit

OMB: 1545-2202

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Form

5884-B

New Hire Retention Credit

(December 2010)

Department of the Treasury
Internal Revenue Service
Name(s) shown on return

▶

OMB No. 1545-2202

▶ Attach to your tax return.
Use Part II to list additional retained workers.

Attachment
Sequence No. 65
Identifying number

A credit of up to $1,000 is allowed for each retained worker. A retained worker generally is a qualified employee (see instructions)
whose first 52 consecutive weeks of employment ended in the current tax year. However, the worker's wages (as defined for income
tax withholding purposes) for the second 26 consecutive weeks must equal at least 80% of the worker's wages for the first 26
consecutive weeks.

Part I

New Hire Retention Credit for Retained Workers

Use a separate column for each retained worker.
If you need more columns, use Part II and include
the totals on line 10.

Enter the retained worker's social security number

Enter the first date of employment from the retained
worker's Form W-11 or similar statement . . . .

Enter the retained worker's wages for the first 26
consecutive weeks of employment . . . . . .

4
5

Add lines 3 and 5 .

Multiply line 6 by 6.2% (.062)

Maximum credit allowable

Enter the smaller of line 7 or line 8

(b)
Retained
Worker
No. 2

Multiply line 3 by 80% (.80) . . . . . . . . .
Enter the retained worker's wages for the second 26
consecutive weeks of employment. If line 4 is larger
than this amount, the qualified employee is not a
retained worker and should not be listed on this form
.

(a)
Retained
Worker
No. 1

/ 2010

1,000 00

Add columns (a) through (c) on line 9 above and columns (a) through (c) on lines 9 of any attached
Parts II
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Enter the total number of retained workers for whom you are receiving a
credit on line 10 (see instructions)
. . . . . . . . . . . . .

1,000 00

New hire retention credit from partnerships and S corporations (see instructions) .

Current year credit. Add lines 10 and 12. Partnerships and S corporations, report this amount on
Schedule K; all others, report this amount on the applicable line of Form 3800 (e.g., line 1aa of the
2010 Form 3800) . . . . . . . . . . . . . . . . . . . . . . . . . . .

For Paperwork Reduction Act Notice, see instructions.

/ 2010

Cat. No. 55035V

Form 5884-B (12-2010)

Page 2

Attachment Sequence No. 65
Identifying number

Name(s) shown on return. Do not enter name and identifying number if shown on other side.

Part II

Continuation Sheet for Additional Retained Workers

Use a separate column for each retained worker. Keep track of the
number of workers listed by entering a number at the top of each
column. For example, the first retained worker listed on the first attached
Part II would be Retained Worker No. 4. If you need more columns, use
additional copies of Part II. Include the totals from columns (a) through
(c) of all lines 9 from all copies of Part II on Part I, line 10.

1
2

Enter the retained worker's social security number .
Enter the first date of employment from the retained
worker's Form W-11 or similar statement
Enter the retained worker's wages for the first 26
consecutive weeks of employment . . . . . .

4
5

6
7
8
9

Add lines 3 and 5 . . . . . .
Multiply line 6 by 6.2% (.062) . .
Maximum credit allowable . . .
Enter the smaller of line 7 or line 8

.
.
.
.

(a)
Retained
Worker
No.

No.

Enter the retained worker's social security number
Enter the first date of employment from the retained
worker's Form W-11 or similar statement
Enter the retained worker's wages for the first 26
consecutive weeks of employment . . . . . .

4
5

6
7
8
9

Add lines 3 and 5 . . . . . .
Multiply line 6 by 6.2% (.062) . .
Maximum credit allowable . . .
Enter the smaller of line 7 or line 8

.
.
.
.

/ 2010

4
5

6
7
8
9

Add lines 3 and 5 . . . . . .
Multiply line 6 by 6.2% (.062) . .
Maximum credit allowable . . .
Enter the smaller of line 7 or line 8

.
.
.
.

No.

/ 2010

3
4

5
6
7
8
9

1,000 00

1,000 00
(b)
Retained
Worker
No.

1,000 00
(c)
Retained
Worker
No.

1
2

/ 2010

3
4

5
6
7
8
9

1,000 00

(a)
Retained
Worker
No.
1
2

(b)
Retained
Worker

1,000 00

(b)
Retained
Worker
No.

1,000 00

1
2

/ 2010

3
4

5
6
7
8
9

1,000 00

1,000 00
Form 5884-B (12-2010)

Page 3

Form 5884-B (12-2010)

General Instructions
Section references are to the Internal Revenue Code.

Purpose of Form
Use Form 5884-B to figure your new hire retention credit
for retained workers (defined later). The new hire retention
credit was enacted as part of the Hiring Incentives to
Restore Employment (HIRE) Act on March 18, 2010. You
may be able to claim this credit if you hired a qualified
employee (defined later) after February 3, 2010, and
before January 1, 2011, and the employee works for you
for at least 52 consecutive weeks. The credit is the
smaller of $1,000 or 6.2% of the employee's wages (as
defined for income tax withholding purposes) paid for the
52 consecutive week period. But you cannot claim the
credit if the employee's wages decreased significantly
during the second 26 weeks. The credit is claimed in the
tax year in which the first 52 consecutive week period
ends.
You cannot claim the new hire retention credit
unless the employee completes and signs Form
W-11, Hiring Incentives to Restore Employment
(HIRE) Act Employee Affidavit, or similar
statement under penalties of perjury and is otherwise a
qualified employee.
The new hire retention credit is part of the general
business credit claimed on Form 3800, General Business
Credit. No portion of the unused business credit
attributable to the new hire retention credit can be carried
back to any tax year beginning before March 18, 2010.
However, you may be able to carry the unused portion
forward. See the Instructions for Form 3800 for details.
Taxpayers, other than partnerships and S corporations,
whose only source of this credit is from a partnership or
an S corporation are not required to complete or file this
form. Instead, report this credit directly on Form 3800.

TIP

Definitions
Retained Worker
A “retained worker” is any qualified employee (defined
below):
• Who was employed by you for a period of not less than
52 consecutive weeks and
• Whose wages (as defined for income tax withholding
purposes) for the second 26 consecutive weeks of
employment are equal to at least 80% of the employee's
wages for the first 26 consecutive weeks of employment.
Qualified Employee
A “qualified employee” is an employee who:
• Begins employment with you after February 3, 2010, and
before January 1, 2011;
• Certifies by signed affidavit (Form W-11 or similar
statement) under penalties of perjury, that he or she has
not been employed for more than 40 hours during the
60-day period ending on the date the employee begins
employment with you;
• Is not employed by you to replace another employee
unless the other employee separated from employment
voluntarily or for cause; and

• Is not related to you. An employee is related to you if he
or she is your child or a descendent 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. An employee is also related to
you if he or she 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.
If you are an estate or trust, see section 51(i)(1) and
section 152(d)(2) for more details.

Specific Instructions
Line 11
Enter the total number of retained workers for whom
you are receiving the new hire retention credit. For
example, if you show the credit calculation for three
employees in Part I and five employees in Part II,
enter “8.”
Line 12
Enter any new hire retention credits from:
• Schedule K-1 (Form 1065), box 15 (code P); and
• Schedule K-1 (Form 1120S), box 13 (code P).
Paperwork Reduction Act Notice. We ask for the
information on this form to carry out the Internal Revenue
laws of the United States. You are required to give us the
information. We need it to ensure that you are complying
with these laws and to allow us to figure and collect the
right amount of tax.
You are not required to provide the information
requested on a form that is subject to the Paperwork
Reduction Act unless the form displays a valid OMB
control number. Books or records relating to a form or its
instructions must be retained as long as their contents
may become material in the administration of any Internal
Revenue law. Generally, tax returns and return
information are confidential, as required by section 6103.
The time needed to complete and file this form will vary
depending on individual circumstances. The estimated
burden for individual taxpayers filing this form is approved
under OMB control number 1545-0074 and is included in
the estimates shown in the instructions for their individual
income tax return. The estimated burden for all other
taxpayers who file this form is shown below.
Recordkeeping . . . . . . . . . . 9 hr., 34 min.
Learning about the
law or the form . . . . . . . . . . . . 40 min.
Preparing and sending
the form to the IRS . . . . . . . . . 2 hr., 2 min.
If you have comments concerning the accuracy of
these time estimates or suggestions for making this form
simpler, we would be happy to hear from you. See the
instructions for the tax return with which this form is filed.

File Type	application/pdf
File Title	Form 5884-B (Rev. December 2010)
Subject	Fillable
Author	SE:W:CAR:MP
File Modified	2011-02-10
File Created	2009-02-13