IRS Urges Employers to Hire Veterans by Dec. 31, Save on Taxes
Employers looking to hire sometime soon are urged to consider hiring veterans. Such hiring may entitle the employer to claim the federal Work Opportunity Tax Credit worth thousands of dollars. Employer must however act soon…the WOTC is available to employers that hire qualified veterans before the new year.
Some key facts about the WOTC include:
1. Hiring Deadline. To qualify for the WOTC, Employers must hire qualified veterans before Jan. 1, 2014. Though the credit was previously set to expire at the end of 2012, the American Taxpayer Relief Act of 2012 extended it for one year.
2. Maximum Credit. Businesses operating taxable operations may claim WOTC tax credit limit up to $9,600 per worker while tax-exempt employers can claim up to $6,240. Employers hiring veterans with service-related disabilities may be eligible for the maximum tax credit.
3. Credit Factors. The credit amount available to employers hiring veterans depends on a number of factors including the length of time a veteran was unemployed, the number of hours worked and the amount of the wages paid during the first year of employment.
4. State Certification. Employers applying for the WOTC must file Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, with their respective state workforce agency. They must file the form within 28 days after the qualified veteran starts work. Further information is available at the U.S. Department of Labor’s WOTC website. You may also contact your New York Tax Attorney for assistance.
