If you plan to add employees, there are tax credits available if you hire qualified veterans.  Employers who follow the guidelines listed below are eligible for a credit of up to $9,600 for each qualified veteran that they hire after the law’s enactment (November 21, 2011) and before January 1, 2013.

Guidelines:

  • You must establish that the veteran is a member of a targeted group that qualifies for the credit, by obtaining a Form 8850. www.irs.gov/pub/irs-pdf/f8850.pdf
  • You can submit the form before the veteran starts work or no later than 28 days after they begin.
  • The form must be submitted with a perjury statement.
  • It can be submitted electronically or to a local agency

Extended Certification Period

The IRS has extended the original 28-day period to obtain certification.  If you hired qualified veterans between November 22, 2011 and May 22, 2012, you will be considered to have satisfied the certification requirement if you submit a pre-screening notice by June 19, 2012.

Tax-exempt organizations can qualify for a credit against their share of the Federal Insurance Contributions Act (FICA) tax they pay on wages to qualified veterans, provided the veterans are performing services related to the organizations’ tax-exempt function.

Guidelines:

  • You must file Form 5884-C www.irs.gov/pub/irs-pdf/f5884c.pdf
  • Because filing Form 5884-C is not coordinated with liability on Form 941 for FICA tax, the organization should not reduce its required employment tax deposit in anticipation of the credit.

If you have questions, please call Sandie Peterson, SPHR at 239-433-5554.