Employer’s planning to claim an expanded tax credit for hiring certain veterans should act soon. Many businesses may qualify to receive thousands of dollars through the Work Opportunity Tax Credit, provided the veteran begins work before the new year.
Six key facts about WOTC as expanded by VOW to Hire Heroes Act of 2011.
1) Hiring Deadline: Veteran must begin work on or after November 22, 2011, but before January 1, 2013
2) Maximum Credit: The maximum credit is $9,600.00 per worker in a for-profit business or $6,240.00 per worker for tax-exempt organizations.
3) Credit Factors: The amount of credit depends on a number 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 wages received during the first year of employment.
4) Disabled Veterans: Employer’s 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. This form must be filed within 28 days after the qualified veteran starts work.
6) Efile: Some states accept Form 8850 electronically.