Hiring Veterans Brings Unique Values & Possibly WOTC Tax Credits

Reasons to hire a veteran

Veterans can offer organizations many valuable skills as an employee as well as potentially earning employers a valuable tax credit. The sacrifices veterans make are immeasurable, and they deserve the support of the business community when it is time to join the civilian workforce. One way to honor their services is to help them obtain jobs that are meaningful, provide more security for their family, and allow them to utilize their unique skills and experiences.

The good news is that some strides have been made in hiring veterans. In September 2022, the veteran unemployment rate was 2.7%, up from 2.4% the previous month and down from 3.7% the prior year. In contrast, the non-veteran unemployment rate was 3.4%, down from 3.6% the previous month and down from 4.7% the prior year.

At times, veterans can struggle when leaving the service and looking for work. Applicant tracking systems don’t always recognize their experience and its unique language when scanning keywords in resumes. But once you’ve identified candidates with military experience, they can bring many valuable skills to the table:

• Working well in a team environment

• Having a sense of duty

• Experiencing self-confidence

• Being organized and disciplined

• Possessing a strong work ethic

• Having cross-functional experience

• Being able to problem solve quickly and creatively

• Being able to be flexible and adaptable

Along with their teamwork skills and character traits, veterans can help you qualify your organization for Work Opportunity Tax Credits (WOTC). WOTC is a federal tax credit available to employers who hire and retain employees from certain targeted demographic groups that typically have challenges gaining employment, and could be worth up to $9,600 per eligible employee. Many veterans may qualify you for this tax credit, especially if they have had trouble finding employment. 

And if your organization has Diversity, Equity & Inclusion (DE&I) initiatives, there are many other targeted groups that might qualify for these WOTC credits. If you think it may be time to consider implementing a WOTC screening program to help you identify more veteran and other diverse candidates, contact us to connect with our subject matter experts. You can also check out this resource, HR Best Practices - How to Get Up to 100% WOTC Screening and Why, for a deeper dive on the subject. 
 

The information provided is intended as general guidance and is not intended to convey any tax, benefits, or legal advice. For information pertaining to your company and its specific facts and needs, please consult your own tax advisor or legal counsel. Links to sources may be to third party sites. We have no control over and assume no responsibility for the content, privacy policies or practices of any third party sites or services.