Did you hire a previously unemployed veteran on or after November 22, 2011? If yes, then take action! There is a credit available to your company, but time is running out.
On November 21, 2011, the President signed into law the VOW to Hire Heroes Act of 2011. This is an expansion on the Veterans Opportunity to Work Act of 2011. This new law expands the work opportunity tax credits to companies that hire eligible unemployed veterans and is also available to tax-exempt organizations. The VOW act was enacted to combat the alarming number of unemployed veterans in the United States -- nearly 1 million today. As Iraq and Afghanistan veterans continue to come home from overseas, the number of unemployed veterans continues to grow.
For-profit companies can claim a credit against taxes owed of as much as $5,600 per qualified veteran and as much as $9,600 per qualified veteran with service-connected disabilities. The credit is available to companies whose veteran employees began work after November 22, 2011 and before January 1, 2013. The amount of the credit is dependent on a number of factors, including the length of the veteran's unemployment before hire, the number of hours the veteran works and the veteran's first-year wages. Companies claim the credit as part of the general business credit on their federal tax return, while tax-exempt organizations claim the credit against their payroll tax liability.
The employer must show certification that the veteran is a member of the targeted group. Certification can be obtained by submitting Form 8850, Pre-Screening Notice and Certification Request for the Work Opportunity Credit, to your respective state workforce agency. Normally, an eligible employer must file this form within 28 days after the eligible worker's first day of work but employers now have until June 19, 2012 to complete and file the newly-revised form for veterans hired on or after November 22, 2011 and before May 22, 2012. Companies who hire veterans between May 22, 2012 and December 31, 2012 will have the standard 28 days to file this form with the respective state workforce agency.
The fine details of this credit may appear complicated; however Berntson Porter can help you take advantage of this fantastic opportunity.
For more information or if you have related questions, please contact Tenly Bretting, CPA at 425-289-7627 or firstname.lastname@example.org.