Form 5884-B

(December 2010)

Department of the Treasury 

Internal Revenue Service

New Hire Retention Credit

▶ Attach to your tax return. 

▶ Use Part II to list additional retained workers.

OMB No. 1545-2202

Attachment 

Sequence No. 65

Name(s) shown on return 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.

(a) 

Retained 

Worker 

No. 1 

(b) 

Retained 

Worker 

No. 2 

 

(c) 

Retained 

Worker 

No. 3 

1 Enter the retained worker's social security number . 1

2 Enter the first date of employment from the retained 

worker's Form W-11 or similar statement . . . . 2 / / 2010 / / 2010 / / 2010

3 Enter the retained worker's wages for the first 26 

consecutive weeks of employment . . . . . . 3

4 Multiply line 3 by 80% (.80) . . . . . . . . . 4

5 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 5

6 Add lines 3 and 5 . . . . . . . . . . . . 6

7 Multiply line 6 by 6.2% (.062) . . . . . . . . 7

8 Maximum credit allowable . . . . . . . . . 8

9 Enter the smaller of line 7 or line 8 . . . . . . 9

10 Add columns (a) through (c) on line 9 above and columns (a) through (c) on lines 9 of any attached 

Parts II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

11 Enter the total number of retained workers for whom you are receiving a 

credit on line 10 (see instructions) . . . . . . . . . . . . . 11

12 New hire retention credit from partnerships and S corporations (see instructions) . . . . . . 12

13 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) . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

For Paperwork Reduction Act Notice, see instructions. Cat. No. 55035V Form 5884-B (12-2010)
Form 5884-B (12-2010) Attachment Sequence No. 65 Page 2

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

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.

(a) 

Retained 

Worker 

No.

(b) 

Retained 

Worker

No.

(c) 

Retained 

Worker

No.

1 Enter the retained worker's social security number . 1

2 Enter the first date of employment from the retained 

worker's Form W-11 or similar statement 2 / / 2010 / / 2010 / / 2010

3 Enter the retained worker's wages for the first 26 

consecutive weeks of employment . . . . . . 3

4 Multiply line 3 by 80% (.80) . . . . . . . . . 4

5 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 5

6 Add lines 3 and 5 . . . . . . . . . . . . 6

7 Multiply line 6 by 6.2% (.062) . . . . . . . . 7

8 Maximum credit allowable . . . . . . . . . 8

9 Enter the smaller of line 7 or line 8 . . . . . . 9

(a) 

Retained 

Worker

No.

(b) 

Retained 

Worker

No.

(c) 

Retained 

Worker

No.

1 Enter the retained worker's social security number 1

2 Enter the first date of employment from the retained 

worker's Form W-11 or similar statement 2 / / 2010 / / 2010 / / 2010

3 Enter the retained worker's wages for the first 26 

consecutive weeks of employment . . . . . . 3

4 Multiply line 3 by 80% (.80) . . . . . . . . . 4

5 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 5

6 Add lines 3 and 5 . . . . . . . . . . . . 6

7 Multiply line 6 by 6.2% (.062) . . . . . . . . 7

8 Maximum credit allowable . . . . . . . . . 8

9 Enter the smaller of line 7 or line 8 . . . . . . 9

(a) 

Retained 

Worker

No.

(b) 

Retained 

Worker

No.

(c) 

Retained 

Worker

No.

1 Enter the retained worker's social security number . 1

2 Enter the first date of employment from the retained 

worker's Form W-11 or similar statement 2 / / 2010 / / 2010 / / 2010

3 Enter the retained worker's wages for the first 26 

consecutive weeks of employment . . . . . . 3

4 Multiply line 3 by 80% (.80) . . . . . . . . . 4

5 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 5

6 Add lines 3 and 5 . . . . . . . . . . . . 6

7 Multiply line 6 by 6.2% (.062) . . . . . . . . 7

8 Maximum credit allowable . . . . . . . . . 8

9 Enter the smaller of line 7 or line 8 . . . . . . 9

Form 5884-B (12-2010)
Form 5884-B (12-2010) Page 3

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.

TIP

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.

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.