The IRS has released guidance and forms that employers can use to claim a newly expanded tax credit for hiring veterans. President Obama signed the expanded credit into law in November. The VOW to Hire Heroes Act of 2011 gives businesses hiring returning heroes and wounded warriors work opportunity for a tax credit.
This credit is claimed when the business files their federal income tax return. Employers can claim the credit for eligible unemployed veterans they hired on or after Nov. 22, 2011. The credit can be as high as $9,600 per veteran. The amount of the credit depends on such factors at the length of the veteran’s unemployment before hire, the hours the veteran works, and the amount of first-year wages paid. The maximum credit applies if employers hire veterans with service-related disabilities.
Employers claim the credit using Form 8850. The form normally must be filed with a state workforce agency within 28 days after an eligible worker begins work. But new rules give employers until June 19, 2012, to complete and file the revised form for veterans hired on or after Nov. 22, 2011, and before May 22, 2012. The 28-day rule will again apply to eligible veterans hired on or after May 22, 2012.
At Pinnacle Hospitality Systems, we combine the hardware, software, and services you need to provide you with everything you need to manage your business. From system design to installation and training, Pinnacle will guide you through the entire implementation process and from there forward provide you with top notch, full service customer support to ensure seamless operations. . Pinnacle Hospitality Solutions offers business solutions to integrate your point of sales system, accounting, credit authorization, online ordering, and inventory in a single easy to use interface that makes daily operations a seamless service from start to finish. For more information, contact Pinnacle at 800-771-7100 today.