Hire a vet and get set ... for a 2012 tax credit

Nov 26, 2012
Hire a vet and get set ... for a 2012 tax credit

Does your business have a job opening right now? Consider filling it ASAP with a former member of the Army, Navy, Air Force, Marines or Coast Guard. This not only salutes their service to our country, but it can also generate savings for your company.

Employers who put a veteran on the payroll by the end of 2012 may be eligible for the Work Opportunity Tax Credit, which encourages companies to hire from groups with high unemployment rates, such as high-risk youth, veterans, welfare recipients and ex-felons in work-release programs.

Though the WOTC expired for non-veteran hires last year, President Obama extended the deadline for employing veterans through Dec. 31, 2012, as part of the “Vow to Hire Heroes Act of 2011.”

To be eligible for the tax credit, businesses must hire “qualified veterans” who meet certain criteria, such as receiving food stamps, being unemployed for at least four weeks or having a service-connected disability.

To verify that the employee is a qualified veteran, businesses must submit IRS Form 8850 to their state workforce agency within 28 days of the veteran’s start date.

For-profit businesses can receive up to $9,600 per veteran; nonprofits are eligible for a maximum of $6,240 per veteran. The amount is determined by several factors, including total work hours, wages and how long the veteran had been unemployed. Businesses that employ service-disabled veterans may qualify for the maximum credit.

For more information, visit the Department of Labor’s WOTC page.