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Simplified Tax Guide Helps Employers Learn Tax Benefits of Hiring Vets

[ 0 ] Jul. 29, 2013 | SBO Editor

Employers now have a user-friendly guide to help them take advantage of tax benefits available for hiring qualified veterans. Inspiration for the new booklet, the 2013 Federal Tax Benefits for Hiring and Employing Qualified Veterans, National Guard Members and Reservists (http://www.centerforamerica.org/tax_benefits.html), came from employers expressing frustration with the tax credit process, from determining whether the employer and veteran qualify for as many as four tax benefits, to the timing of filing for the tax benefits.

In context, the issue is a critical one: Unemployment among veterans, National Guard, and Reservists is higher than the overall national average, based on recent deployments and other factors. In the National Guard alone, tens of thousands of men and women are unemployed – nearly 20 percent of the total force, by most accounts.

“I am glad to recommend to employers everywhere that they make a special effort to hire our veterans and to recommend this employer tax credit guide as a convenient and reliable way to learn about the significant federal tax benefits available to employers who hire veterans,” said Sen. Max Baucus of Montana in the foreword of the tax guide. Baucus is Chairman of the Senate Finance Committee, which has jurisdiction over the tax code.

The Guide was researched and drafted by attorneys at Caplin & Drysdale, one of the nation’s premier tax law firms. “Our goal was to break down the barriers for employers by offering a step-by-step guide on the 2013 tax credits, including key eligibility and filing details to maximize tax benefits to employers,” said Clint Wallace, the Caplin & Drysdale attorney who led the research effort. “We’re confident the Guide illuminates the path on how to best qualify for the benefits and how to avoid the procedural pitfalls.”

Employers are often confused by the tax benefits available to them when they hire a qualified veteran, National Guard member, or Reservist. Many have reported being denied the tax benefit with no explanation. “The Guide addresses these frustrations by simplifying the process, explaining the relevant details of the four major tax benefits available, describing who is qualified, and connecting the reader directly with the relevant forms,” said Steve Nowlan, Center for America President. “The immediate need is to enable and inspire employers to hire trained, dedicated military, and this tax guide is a critical tool in that effort.”

The free Guide (http://www.centerforamerica.org/tax_benefits.html) is available through dozens of trade and professional associations and state Chambers of Commerce participating in the American Jobs for America’s Heroes campaign and covers four federal tax credits available to employers in 2013:

  • The Returning Heroes Tax Credit, which provides up to $5,600 to employers for each veteran hired who has been unemployed or has received supplemental nutrition assistance (food stamps) during the past year;
  • The Wounded Warrior Tax Credit, which provides up to $9,600 to employers for each unemployed veteran hired who has a disability related to their service;
  • The Activated Military Reservist Credit for Small Businesses, which provides employers with 50 or fewer employees with a credit of up to $4,000 for each Reserve or National Guard employee who is paid wages by the employer while they are away from work or on active duty; and
  • The Federal Empowerment Zone Employment Credit, which provides up to $3,000 to employers for each employee, including any veteran or National Guard member, who lives and works in a federally designated enterprise community or empowerment zone.

The Guide also provides links to required IRS and U.S. Department of Labor forms employers need to submit, along with guideposts for filing deadlines and qualifications.

How American Jobs for America’s Heroes Works

Job postings made by employers are plugged directly into the National Guard Employment Network. Hundreds of state National Guard employment counselors are working one-on-one with candidates and employers to match them to jobs. AJAH is an important complement to existing employment efforts and job fairs. http://www.centerforamerica.org/pledge/ng/ajah_mm.html.

There are no fees to participating companies or job candidates. Employers who want to post open positions can sign up through the Center for America website at: www.centerforamerica.org/register.html

About American Jobs for America’s Heroes Campaign

The American Jobs for America’s Heroes (AJAH) campaign, made up of more than 80 trade and professional associations, non-profit organizations, and state Chambers of Commerce representing more than 150,000 companies nationwide, is a non-profit alliance with the National Guard to help unemployed National Guard members, veterans and spouses find skilled jobs in the private sector. Phillips 66, an energy manufacturing and logistics company (NYSE:PSX), is the lead national sponsor for this campaign. Currently, tens of thousands of National Guard members are unemployed. See the AJAH short video on the campaign – http://www.centerforamerica.org/video.html.

About The Center for America

The Center for America (www.centerforamerica.org) is a non-profit organization founded in 2004 that focuses its national efforts on educating and empowering the public about barriers to free enterprise, the need for expanded skills training and job creation, and the impact of lawsuit abuse on reducing job creation.

Twitter: https://twitter.com/USJobs4USHeroes
Facebook: https://www.facebook.com/AmericanJobsforAmericasHeroes
Blog: http://americanjobsforamericasheroes.blogspot.com/

About Caplin & Drysdale, Chartered

For more than 45 years, Caplin & Drysdale has been a leading provider of a full range of tax, tax controversy, and related legal services to companies, organizations, and individuals throughout the United States and around the world. With offices in New York City and Washington, DC, the firm also provides counseling on matters relating to bankruptcy, creditors’ rights, political activity, exempt organizations, complex litigation, employee benefits, private client services, corporate law, and white collar defense. For more information, please visit us at www.caplindrysdale.com.

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Category: Features