If your company is looking to hire before the end of 2013, consider hiring a qualified veteran. Doing so may qualify you for the Work Opportunity Tax Credit, which can be worth several thousand dollars for employers.
The veteran must be hired on or before December 31, 2013 in order for the credit to apply because the credit will expire after that date.
The maximum allowable credit for a qualified veteran is $9,600 if the company claiming the credit is operating as a taxable entity. For non-taxable entities, the maximum allowable credit is $6,420 per veteran.
If the veteran being hired has a service-related disability, the employer may be eligible for the maximum amount of the credit. If not, the credit amount is determined by:
- The length of the veteran’s unemployment
- The number of hours the veteran works
- The wages paid to the veteran during the first year of employment
To be eligible to claim this credit, employers are required to file Form 8850. This is the Pre-Screening Notice and Certification Request for the Work Opportunity Credit. This form must be signed by the job applicant and must be filed with the appropriate state workforce agency within 28 days of the start date of the employee. In some states, Form 8850 can be filed electronically.
If you have any questions, contact FlemmerAssociates at 916-576-7050.