Caplin & Drysdale Creates New Version of Tax Guide to Help Employers Hire Veterans

Simple Guide on Tax Credits for Employers Hiring Veterans and the National Guard

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Mar 07, 2016, 12:20 ET

WASHINGTON, March 7, 2016 /PRNewswire/ -- Caplin & Drysdale, in collaboration with the Center for America, announced today the creation of a simple, user-friendly guide to help employers take advantage of tax credits available for hiring qualified veterans. Firm President Beth Shapiro Kaufman and Associate Elizabeth J. Stevens updated the Guide in 2016 to include legislation enacted by Congress in late 2015 changing and extending tax breaks for employers who hire veterans. "By hiring veterans and Reservists, employers can gain highly-capable employees who have a keen understanding of loyalty, teamwork, and professionalism, and also benefit from special tax incentives designed to ensure that those who have served our country can return to the civilian workforce. Unfortunately, many employers—particularly small and mid-sized businesses—may not know that these incentives are even available, let alone how to take advantage of them. We believe this Guide will help to ensure that employers are informed, provide them with practical guidance on the steps required to claim these credits, and encourage veteran hiring in the process," said Ms. Stevens, who also served as a U.S. Naval officer from 2002 through 2005. NYU Professor Clint Wallace (a former Caplin Associate) researched and drafted the original Guide in 2013.

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Inspiration for the new Guide, called the 2016 Federal Tax Benefits for Hiring Qualified Veterans, National Guard Members and Reservists, came from employers expressing frustration with the tax credit process. "It covers key federal tax credits available for hiring veterans, as well as step-by-step instructions to help businesses qualify for the maximum tax benefit when filing tax returns for 2015 and beyond," said Ms. Kaufman. "In its first iteration in 2013, the Guide was downloaded more than 50,000 times by employers."

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This chart summarizes the four federal programs offering tax incentives for employers who hire or employ veterans.

Returning Heroes	Eligibility Criteria	Amount of Credit Per Employee
Level 1	- Veteran who is a member of a family receiving food stamps for at !east 3 months during 15 months before hiring date*	40% of first $6,000 in wages. Maximum credit is $2,400
Level 1	- Veteran certified as having been unemployed more than 4 weeks but less than 6 months during 12 months before hiring date*	40% of first $6,000 in wages. Maximum credit is $2,400
Level 2	- Veteran certified as having been unemployed at !east 6 months during 12 months before hiring date*	40% of first $14,000 in wages. Maximum credit is $5,600
Wounded Warrior	Eligibility Criteria	Amount of Credit Per Employee
Level 1	- Veteran with service-connected disability and certified as having a hiring date* within 12 months of the end of active duty	40% of first $12,000 in wages. Maximum credit is $4,800
Level 2	- Veteran with service-connected disability and certified as being unemployed for at !east 6 months during 12 months before hiring date*	40% of first $24,000 in wages. Maximum credit is $9,600
Activated Military Reservist	Eligibility Criteria	Amount of Credit Per Employee
Employees: Employer:	- Employed more than 90 days - National Guard or Reservist called for active duty for more than 30 days - Average of 50 or fewer employees (This requirement applies only to employers in 2015. After 2015 there are no restrictions on the size of the employer.)	20% of first $20,000 in wages; maximum credit $4,000
Empower- ment Zone	Eligibility Criteria	Amount of Credit Per Employee
	- Employee must live and work in Empowerment Zone - Employee must be employed for 90 days or more	20% of first $15,000 in wages; maximum credit $3,000

*Hiring date, as used in this table and elsewhere in this booklet, means the date on which the employee accepts a job offer from the employer. Start date is the date the employee begins work for the employer.

For tax professionals, the Guide will be a useful roadmap that will save time. It provides all the necessary forms and lays out exactly what a business needs to do to qualify. Links to required IRS and U.S. Department of Labor forms employers need to submit are also included, along with guideposts for filing deadlines and qualifications.

About Center for America

The Center for America (www.centerforamerica.org) is a non-profit organization founded in 2004 that focuses its national efforts on educating and empowering the public about barriers to free enterprise, the need for expanded skills training and job creation, and the impact of lawsuit abuse on reducing job creation.

About Caplin & Drysdale

Having celebrated our 50th Anniversary in 2014, Caplin & Drysdale continues to be a leading provider of tax, tax controversy, and litigation legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills—combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment—make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:

- Bankruptcy

- Business, Investment & Transactional Tax

- Complex Litigation
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- Employee Benefits
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- International Tax
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- Private Client
- Tax Controversies
- Tax Litigation
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