Veterans returning from active duty possess an array of skills that translate well into the civilian workforce, but they are historically underemployed. As a result, both the federal government and an increasing number of states are rewarding businesses of all sizes with tax credits as an incentive to help our heroes find meaningful and valuable employment.
Tax credits can be lucrative for employers, and being informed about what they are and how to claim them is the first step towards taking advantage of these opportunities.
The federal government has several employee tax credit programs through the Work Opportunity Tax Credit (WOTC) incentives.
The Wounded Warrior Tax Credit recognizes veterans who have service-connected disabilities and may or may not be unemployed for a length of time. It maintains the existing WOTC credit (maximum of $4,800) for veterans with service-connected disabilities. However, it also created a new credit for veterans with service-connected disabilities who have also been unemployed longer than six months. Employers would receive a credit of 40 percent of the first $24,000 of wages (up to $9,600).
Because the process is heavy in administrative tasks and paperwork, many businesses partner with an experienced firm to process WOTC credits for them. The firm submits forms for certification and returns the certified letters to the businesses. This partnership not only saves a business time, but also helps find other potential opportunities as an experienced firm helps their clients stay current with changes in tax credits.
Be sure your business is not leaving thousands of dollars on the table. Don’t let the complexity of tax credit programs hinder your business from pursuing them. They are a low-hanging fruit that can help increase your bottom line.
For more information or assistance on WOTC and employment tax credits, call Stevie Swain at Swain Consulting at 513-818-1753 ext. 4.