Q: I have a small business and I was wondering if there are any federal credits for hiring certain workers, like veterans?
A: If you are considering expanding your workforce you might be able to do so and claim the Work Opportunity Credit, which was designed to motivate employers to hire persons from certain groups that have a high unemployment rate or other special needs. It covers certain veterans, ex-felons, high-risk youth, public assistance recipients, and other persons hired before September 30, 2011. For a person to be considered a member of the group the state employment agency must certify him or her as such before or shortly after the person begins work. The credit is calculated differently depending on what group the person is in. For some, the credit is up to 40% of the “qualified first year wages”. The credit can be twice as much if the employee is a disabled veteran. For long-term family assistance recipients the credit lasts for two years. You can claim the credit by filing Form 5884 with your return.
Crystal Faulker is a C.P.A. with Cooney, Faulkner, and Stevens, LLC - Certified Public Accountants | Business Advisors.
NOW IT'S YOUR TURN! GOT A FOLLOW-UP QUESTION, OR DO YOU HAVE ADDITIONAL ADVICE?
POST IT BELOW BY CLICKING "ADD A COMMENT."
