Hire a Vet and Save on Taxes
In a previous post we highlighted the The Work Opportunity Tax Credit and pending legislation regarding veterans This tax credit will be expiring at the end of the year (2011). This is bad news for businesses that are considering hiring new employees in the coming months. However, the news is not all bad...
There is one targeted group (veterans) included in the Work Opportunity Tax Credit that businesses can hire and take advantage of any even larger credit.
Last week President Obama signed into law the VOW to Hire Heroes Act. This bill expands the payroll tax credit for the Veterans group, contained in Work Opportunity Tax Credit. Businesses hiring veterans will receive tax credits according to the following criteria:
- Business that hire a veteran that has been unemployed for at least four weeks will receive a tax credit of 40% for the first $6,000 of wages paid - a credit of $2,400 per unemployed veteran hired that meets the criteria.
- If you hire a veteran that has been unemployed for more than 6 months you can receive a credit of 40% on the first $14,000 of wages - a credit of $5,600 per unemployed veteran hired that meets the criteria.
- The Wounded Warrior Tax Credit allows business that hires a veteran who have a service-related disabilities to claim a tax credit of 40% on the first $24,000 of wages. a credit of $9,600 per unemployed veteran hired that meets the criteria.
In addition the bill provides for additional support and training for veterans to attempt and reduce the high rate of unemployment for veterans. Additional information can be found here on the House Committees on Veterans Affair's web site.
Are you thinkuing of hiring new employees? Download a free copy of our E Verify Guide.