This is a follow-up to my recent post about tax benefits employers earn by hiring military veterans. In addition to strong skill sets and personal characteristics, many veterans can bring an added financial benefit to their employer through the Work Opportunity Tax Credit (or WOTC).
Employers naturally have questions about how veterans qualify. How long must a veteran have served? What if they have a service-connected disability? What are the specific tax credit amounts? Today, I’ll go into these details.
If you’re a business owner, CPA or hiring executive, this is for you. Everyone knows that hiring veterans is both the right thing and the smart thing to do for many reasons.
Military veterans bring a unique set of skills to the civilian labor market. Few organizations like the military can teach, enforce and reward the characteristics of teamwork, initiative, leadership, organization and mission.
The military is also a highly diverse and talented group of people. As a result, veterans have deep experience working well with others. That experience instills respect and the ability to adapt and excel in a wide variety of circumstances. (more…)
It’s Independence Day! The birthday of our nation! A day to celebrate freedom and many time-honored American traditions.
Writing of this great event in 1776, yet-to-be future President John Adams said, “It ought to be solemnized with pomp and parade, with shows, games, sports, guns, bells, bonfires, and illuminations, from one end of this continent to the other, from this time forward forever more!” (source)
Americans today still take great pride and pleasure fulfilling Mr. Adams’ vision. And amidst the celebrating, the BBQs, fireworks and parades, we remember our nation’s many generations of soldiers. These are America’s finest, the men and women whose blood, sweat, tears and love make America possible.
Carmen Ortiz, the United States’ National WOTC Coordinator (U.S. Department of Labor, Employment & Training Administration) issued a correspondence to all of the program’s Regional Coordinators. The purpose of the correspondence was to answer the question many have been asking about IRS Notice 2013-14.
Does the notice in essence wave the “on or before the day of hire” requirements created by §51(d)(13)(A)(ii). Short answer: YES!
In her email correspondence, Ms. Ortiz states that while she is the author of the response to this question, she first ran her response before the IRS.
Now I quote Ms. Ortiz, National WOTC Coordinator: (more…)
Opportunity Alert! IRS Notice 2013-14 Providing Transition Relief for Employers Submitting Late WOTC Applications
The IRS has released IRS Notice 2013-14, which provides transition relief given the late retroactive renewal of the Work Opportunity Tax Credit program in January. The transition rules are not the same, however, for all WOTC target groups.
Notice 2013-14 waves the 28-day deadline for submitting IRS Form 8850 (the WOTC Pre-screen Notice) for qualifying employees hired within certain dates ranges in 2012 and early 2013. The extended deadline for submitting the applications for affected employees is now April 29, 2013.
The rules apply as follows:
- For all targeted groups except qualifying veterans, the extension applies to qualifying employees hired from January 1, 2012 through March 31, 2013 (that’s a period of 15 months).
- For qualifying veterans, the extension applies to qualifying employees hired between January 1, 2013 through March 31, 2013 (a period of just 3 months)
House Resolution 5845 was introduced by Congressman Ted Poe of Texas and referred to the House Ways and Means Committee last Friday (on May 18th). As of this afternoon, the actual text of the bill is not yet available. The title, however, is listed as
H.R.5845 – To amend the Internal Revenue Code of 1986 to extend the work opportunity tax credit for veterans and to allow an exemption from an employer’s employment taxes in an amount equivalent to the value of such credit.
In January, I mentioned that Minnesota’s Democrat Governor Mark Dayton was proposing state jobs tax credits to reward employers who hire veterans, unemployed workers, and recent graduates. During the intervening months, this ongoing story hit the news a surprising number of times . . . almost always in the context of budgeting disagreements between state Democrats and the Republican controlled Minnesota legislature. (more…)