Hire a Veteran and Earn up to $9,600 WOTC Tax Credit.
Posted by Ross Henderson on Mon, Jan 02, 2012 @ 03:30 PM
Under the recent Vow to Hire Heroes Act of 2011 (enacted November 22, 2011), Work Opportunity Tax Credits (WOTC) for hiring a Veteran can be up to $9,600 for each eligible new hire.
A summary of this Act's key WOTC-related provisions as below:
• Extends the current target group for Veterans receiving Supplemental Nutrition Assistance Program (SNAP) benefits with the same qualified wages cap ($6,000) and maximum tax credit ($2,400).
• Extends the current target group for Veterans with a service-connected disability with the same qualified wages cap ($12,000) and maximum tax credit ($4,800).
• Extends the current target group for Veterans with a service-connected disability unemployed for at least 6 months with the qualified wages cap increased to $24,000 and the maximum tax credit increased to $9,600.
• Establishes a new target group for unemployed Veterans, similar to the Recovery Act of 2009 unemployed Veteran group that expired on December 31, 2010:
o Veterans unemployed for at least 4 weeks with a qualified wages cap of $6,000 and maximum tax credit of $2,400.
o Veterans unemployed for at least 6 months with qualified wages cap of $14,000 and maximum tax credit of $5,600.
The Work Opportunity Tax Credit (WOTC) is a Federal tax credit incentive provided to private-sector businesses for hiring individuals from target groups who have consistently faced significant barriers to employment. This program provide $millions in annual refunds and should be part of all employers' new employee onboarding practices. ETS helps many employers maximize savings and reduce internal resource needs through our "Credits PLUS" Hiring Based Credits Administration solutions, including Veterans Tax Credits under the VOW to Hire Heroes Act of 2011.
