Earlier, We blogged about how employers and the California Department of Veterans Affairs (CalVet) are working together to educate eligible employees about the federal and state benefits available to military veterans.

CalVet is reminding business owners that they may be eligible for thousands of dollars in state and federal tax benefits and other incentives for hiring qualified veterans.

California is currently home to 1.9 million veterans. Another 30,000 men and women separate from military service and return to the state every year. With the withdrawal of troops from Iraq and Afghanistan, an additional 6,000–10,000 veterans are expected to return to California by the end of 2012.

Tax Benefits and Other Incentives

At the federal level, the Work Opportunity Tax Credit is based on a percentage of qualified first-year wages, ranging from 25 percent to 40 percent. Maximum eligible credits may be as high as $2,400 for hiring a qualified veteran and up to $9,600 for hiring a veteran with service-connected disabilities. 

Employers interested in more information about how to apply for the Work Opportunity Tax Credit can visit the IRS for additional details. Also, the IRS announced that employers will have more time to file the required certification form for employees hired on or after November 22, 2011, and before May 22, 2012.

At the state level, employers could be eligible for a tax credit from the California Enterprise Zone; up to $37,000 over five years for employers hiring certain economically challenged employees, including veterans. 

The process for documenting these state and federal tax benefits is fairly straightforward for the certified public accountant or taxpayer, according to  Corporate Taxation Insider. In addition, systems can be set up to allow the employer to pre-screen employees before they are hired to streamline the documentation process and maximize the hiring credit. 

CalVet also would like to remind employers that depending on the nature of their service, veterans who separated from military service after 9/11 may be entitled to five years of free health care through the U.S. Department of Veterans Affairs.

Please visit CalChamber’s website for the full story.

Author: CalChamber/HR Watchdog

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