Get access to the exclusive HR Resources you need to succeed in 2018.
Sign up for free email newsletters and get more SHRM content delivered to your inbox.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 14 cities across the U.S. this fall.
Gain the skills you need to rise to the next level in your career. Jon us at SHRM's Leadership Development Forum, October 2-3 in Boston.
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
Businesses that want to take advantage of a new law that provides tax breaks for hiring unemployed veterans or jobless veterans with disabilities must act fast to apply to get thousands of dollars in benefits. Companies have just 28 days after the hire to apply for benefits under the VOW to Hire Heroes Act, which President Barack Obama signed into law on Nov. 21, 2011.
The application process can be complicated for large companies that operate across a wide region and that have to verify the employment status of a veteran in each state, experts said.
“An employer has to screen the applicant on or before the offer being made,” said Ezrie Yellin, Work Opportunity Tax Credit product manager at
TALX, a St. Louis-based company that provides services to human resources, tax and payroll departments. “The state workforce agency will then either approve or deny or ask for more information.”
The Obama administration and Congress worked together on the legislation to extend and expand tax benefits to companies that hire veterans, especially veterans who served in Iraq and Afghanistan.
The jobless rate for all veterans fell to 7.5 percent in January 2012, down sharply from 9.9 percent the previous year and below the national average of 8.3 percent, according to data from the Bureau of Labor Statistics (BLS). However, the unemployment rate for veterans who were on duty in Iraq and Afghanistan remained high at 9.1 percent in January 2012, BLS reported.
Veterans who served in these wars tend to be young and have less college education and corporate experience than others. This might make them unattractive to some employers that have many applicants to select from in the large post-recession labor market. However, many learn skills in the military that are valuable in the civilian world, including managing expenses for major operations, doing large-scale logistics, and providing emergency medical care to the wounded, Obama said before signing the bill into law.
“Employers who hire our veterans are getting the best America has to offer,” said Gary Fry, national commander of AMVETS, a Washington, D.C.-based organization that works to improve the quality of life for veterans and active duty personnel. “Employers benefit, our veterans benefit, the economy benefits and the nation as a whole benefits.”
The Vow to Hire Heroes Act continues the Work Opportunity Tax Credit—already in existence—for veterans with service-connected disabilities, which has a maximum of $4,800. In addition, it offers businesses a new tax credit of:
Some companies look for veterans for vacant positions, Yellin said. Others select the best candidate and then determine after hire whether that person would qualify for veteran-based tax breaks, he said.
Nonprofit and for-profit companies that hire a veteran must submit an Internal Revenue Service Form 8850 and either a Department of Labor Employment and Training Administration Form 9061 or 9062 to their local Work Opportunity Tax Credit (WOTC) coordinator to get certification for the tax credits.
A company can hire a third-party company to apply for the tax benefit on their behalf, said Angela Lockman, director of tax credits and incentives for TALX Tax Management Services.
“For employers who operate in several states it can be arduous,” Lockman told
SHRM Online. “They have to receive certification from the state and be aware of other regulations in various states. That drives the need for a third party to help them with compliance with the program.”
For more information on applying for the tax credits, as well as contact information for state WOTC coordinators
click here to read a White House fact sheet. The IRS released guidance on how to claim the tax benefits. To read it,
Greg Wright is a Washington, D.C.-based freelance writer who has covered Congress, consumer electronics and international trade for a number of major news organizations.
Related Articles and Resources
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
CA Resources at Your Fingertips
SHRM’s HR Vendor Directory contains over 10,000 companies