Tax Benefits of Hiring Veterans

Hire Vets First and Receive Tax Benefits!

The Connecticut Department of Labor (DOL) and U.S. Department of Veteran Affairs (VA) offer tax benefits and free services to employers who hire Veterans.  Pre-screening of applicants and reliable referrals are only a few services offered at no cost to the employer.

 

On-the-Job Training Grants (OTJ) —The Connecticut DOL offers on-the-job training to eligible applicants at the employer’s place of business.  Employers are reimbursed up to 50% of the Veteran’s salary during the program.  The program is customized to the employer’s work requirements and the DOL helps complete minimal paperwork.

 

Work Opportunity Tax Credit (WOTC)—a Federal tax credit available to employers who hire eligible Veterans. WOTC can reduce an employer’s federal income tax liability by as much as $9,600 per employee hired.

 

Veterans                                               Maximum WOTC Tax Credit

Hired one year from leaving service                               $4,800

Unemployed at least 6 months                                       $9,600

Unemployed at least 4 weeks                                        $2,400

There is no limit on the number of individuals an employer hires to qualify for the tax credit.

 

How to apply for the WOTC

  • Employee and employer complete the Pre-Screening Notice and Certification Request for the Work Opportunity Credit (IRS Form 8850)
  • Complete Applicant Information Form (ETA Form 9061)
  • Mail Forms 8850 and 9061 within 28 days of the employee’s date of hire to:

     Work Opportunity Tax Credit Unit
     CT Department of Labor
     200 Folly Brook Blvd
     Wethersfield, CT 06109

  • CT Department of Labor determines eligibility of the applicant and notifies employer of certification.
  • After the employee meets the number-of-hours-worked requirement, the employer completes the Work Opportunity Credit Form (IRS Form 5884). This form is attached and filed with the employer’s federal income tax return.

For more information, please call (203) 859-3454 or visit (DOL WOTC)

 

NOTE:  The WOTC is not available if the employer receives on-the-job-training payments that are federally funded.  (See SEI Program next)

 

U.S. Department of Veteran Affairs (VA) offers the Special Employer Incentives (SEI) Program.  Employers who hire Vets receive:

  • Reimbursement up to 50% of the Veteran’s salary during the program
  • VA provided tools, equipment, uniforms and other supplies
  • Accommodations for the Veteran, if needed
  • VA support with paperwork, placement and training

For more information, please call 1-800-827-1000 or visit www.benefits.va.gov/VOW

 

American Jobs for America’s Heroes—Employers can post jobs at no cost for Veterans, National Guard Members and Reservists.

  • Register at: CenterforAmerica.org/register.html
  • You will be contacted by email to provide you with e-Link to upload your job postings.
  • Employment counselors in military branches match your job posting with qualified military applicants.
  • Employer contacts the applicant(s)

 

Please call us at (860)646-2465 if you have any additional questions.

About the author:

Tom Scanlon, CPA, CFP®

Tom Scanlon has over twenty-five years experience in public accounting with an extensive background in the areas of financial, tax and estate planning. Find Tom on Google+

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