Honoring Veterans: Embracing Their Impact on Veterans Day and Beyond

The Skills Veterans Can Bring to Your Workforce

Veterans bring unique qualities to any organization. As a result of their military experience, they possess strong leadership skills, adaptability, and work ethic. These traits, developed under challenging circumstances, seamlessly translate into the civilian workplace, enhancing team dynamics and fostering a culture of excellence.

Beyond their skills, veterans also bring a deep sense of responsibility and commitment. Their reliability and dedication to tasks are unparalleled, making them valuable assets in any business setting. Moreover, a diverse workforce that includes veterans fosters innovation and improves financial performance, as noted by the Society for Human Resource Management (SHRM).

Reap the Rewards When Hiring Veteran Workers

As a gesture of gratitude for their commitment, when you hire valuable veterans for your organization you can also tap into the Work Opportunity Tax Credit (WOTC) when onboarding eligible veterans. 

This program provides financial incentives, with tax credits of up to $9,600 per eligible hire. Embracing this opportunity not only supports veterans in their transition to civilian life but also enhances your team's capabilities.

How to Calculate the Work Opportunity Tax Credit

In today’s competitive landscape, optimizing tax benefits, like WOTC, is paramount, but understanding the intricate calculations involved can be daunting. Discover how this credit can significantly impact your bottom line while honoring our veterans' contributions to the workforce.

1. Determine Eligibility

First, determine if the new employee qualifies as a member of a targeted group. This information is usually obtained through the completion of Form 8850, the Pre-Screening Notice and Certification Request for the Work Opportunity Credit, which must be submitted to your state workforce agency within 28 days of the employee's start date.

WOTC calculations involve various factors, from the veteran's employment duration to service-related disabilities. Simplify this process and partner with solutions like HRlogics. We break down these elements, providing you with a clear roadmap. With our guidance, you'll navigate the maze of WOTC eligibility criteria and credit percentages effortlessly.

2. Calculate the Credit

The WOTC credit is calculated based on a percentage of qualified wages paid to the eligible employee during the first year of employment, up to a specified maximum amount. The percentage of qualified wages varies depending on the target group the employee belongs to. 

For example, the credit for hiring qualified veterans could range from $2,400 to $9,600, depending on factors like the veteran's length of unemployment, whether they have a service-connected disability, and the number of hours they work.

3. Claim the Credit

To claim the credit, you need to complete IRS Form 5884, Work Opportunity Credit, and include it with your business tax return. The credit will then reduce your business's tax liability. 

Or partner with solution providers like HRlogics and Total WOTC, which simplifies the process of identifying and qualifying for business incentives and tax credits — saving you time and hassle!

4. Consult a Tax Professional

It's important to note that tax laws and regulations are subject to change. Therefore, it's advisable to consult with a tax professional or the IRS for the most current and specific information regarding the WOTC program and how to calculate the credit for your particular situation.

When partnering with HRlogics, you can rest assured that you’ll be backed by our 100% audit protection. With $3 billion secured and $0 returned to the IRS, our dedication to our clients is unmatched. Through our leadership team's 150+ years of tax credit experience, HRlogics WOTC provides veteran insight that helps clients optimize tax credits and incentives.

Understanding WOTC is not just about claiming credit; it's about strategically integrating it into your financial blueprint. HRlogics’ tailored approach ensures you not only maximize your savings but also fortify your financial future. 

Celebrate Veterans and Your Bottom Line

On Veterans Day, let's celebrate the skills, dedication, and resilience of veterans. By hiring them and taking advantage of programs like WOTC, we not only acknowledge their service but also enrich our workplaces with their unique perspectives and abilities. Honor veterans beyond just Veterans Day, by welcoming them into your team and appreciating the lasting impact they make on businesses nationwide.