Tax Credits for Hiring Veterans Help Smart Employers Reap Dividends
We believe hiring veterans is a great business decision by itself, but did you know you can potentially increase your ROI with tax benefits for hiring veterans? We’ve joined forces with Synergi Partners to assist our clients in adding thousands of dollars back to their bottom line through tax credits tied to veterans they’ve already hired.
Tax credits range in value from $1,200 to $9,600 per eligible new veteran hire. Whether companies hired enlisted vs officer makes no difference in receiving the benefit.
Where Do Tax Breaks for Hiring Veterans Come From?
The Work Opportunity Tax Credit (WOTC) is a federal hiring incentive that provides a tax credit worth up to $9,600 for hires that come from a variety of groups, including qualified military veterans.
How Do Tax Credits for Veterans Work?
Tax credits apply dollar-for-dollar against taxes owed and can be carried forward up to 20 years. Of the 310 million people living in the United States, roughly 125 million are employed on a full-time basis, and 100 million fall into one of the target groups.
A company with gross revenues of $10 million, and expenses of $9 million would realize a net profit of $1 million and pay roughly $300,000 in taxes. Any tax credits for hiring veterans apply directly to the bottom line. That means a tax credit of $225,000 would leave the amount of taxes owed at $75,000.
Veteran Hires Bring More Tax Benefits
Some employers may already use tax credits but want to gain even more tax relief. The answer? Hire veterans. The reason? Veterans usually qualify in more credit categories than civilians, such as service-connected disabilities. Employers that orient their hiring toward veterans will see a larger tax credit value.
The average veteran tax credit value to employers is $4,478 for veterans and $3,468 for civilians. While roughly 20% of civilians qualify, between 40-50% of veterans qualify for tax credits. In terms of dollars saved, that means an employer that hires 16,000 civilians in a year gets a $3,468 credit for roughly 20% of them, amounting to $11,097,600. However, if that employer orients its hiring toward veterans instead, the results are much different. Of those 16,000 new veteran hires, approximately 40% qualify for WOTC.
That’s a whopping $30,515,200 in tax credits due the employer.
About Synergi Partners
Synergi beats the competition when it comes to screening, eligibility, forms compliance, certifications, and reporting. The company focuses solely on tax credit and disaster relief to capture the maximum credits for its clients. With 30 years of experience and a team of tax credit veterans who have worked with government entities and regulatory agencies to define tax credit and disaster relief programs, Synergi maximizes the value of a company’s military hires.
Press the “Easy” Button
By partnering with industry experts, Bradley-Morris/RecruitMilitary now offers 360-degree expertise when it comes to recruiting and hiring veterans. Smart employers already hire veterans because of the strong leadership, training and skills they bring to the workforce. By leveraging the tax benefits for hiring veterans, they can get paid to do it.