A Call to Arms: Tax Breaks for Hiring Vets
By Ken Berry
Six Key Facts to Know
1. Hiring deadline: Employers may be able to claim the expanded WOTC for qualified veterans who begin work on or after November 22, 2011, but before January 1, 2013.
2. Maximum credit: The maximum tax credit is $9,600 per worker for employers that operate for-profit businesses or $6,240 per worker for tax-exempt organizations.
3. Credit factors: The amount of credit will depend on a number of factors. Such factors include the length of the veteran's unemployment before being hired, the number of hours the veteran works, and the amount of the wages the veteran receives during the first year of employment.
4. Disabled veterans: Employers hiring veterans with service-related disabilities may be eligible for the maximum tax credit.
5. State certification: Employers must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their state workforce agency (SWA). The form must be filed within twenty-eight days after the qualified veteran starts work. For additional information, visit the US Department of Labor WOTC website page.
6. E-file: Some states accept Form 8850 electronically.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.