Wednesday, August 19, 2015

4 Ways Hiring Veterans Can Save You Money

For the thousands of companies today that are actively recruiting veterans, surely one of the biggest motivators is a sense of patriotism. And while this is certainly one admirable reason to hire veterans, we here at Hire a Hero have espoused both the tangible and intangible skills that these men and women bring to the civilian workforce. However, there is yet another reason to hire veterans--there are significant cost benefits associated with hiring veterans.

1. Tax Benefits to Hiring Veterans

On December 19, 2014, President Obama signed into law the Tax Increase Prevention Act of 2014, which provided for the temporary extension of more than 50 tax breaks, most of which expired at the end of 2013. The bill was retroactive and covered the entire 2014 tax year. Included in these extenders was an extension of the Work Opportunity Tax Credit (WOTC) tax credit, which expired on December 31, 2013. Through this bill, WOTC was retroactively put in place through 2014, for eligible veteran employees who began work before January 1, 2015. This credit has obviously expired for now, but it could likely be extended again.

WOTC contains provisions for both the Returning Heroes Tax Credit, which provides incentives of up to $5,600 for hiring qualified unemployed veterans, and the Wounded Warriors Tax Credit, which provides credit for long-term unemployed veterans with service-connected disabilities to up to $9,600. Learn more about Federal Tax Credits for Hiring Veterans.

There are also other programs which offer state and local tax benefits to hiring veterans in addition to federal credits. For example, Utah has the Veteran Employment Tax Credit, which provides tax credits for the first year beginning at $200 per month, not to exceed $2,400 per year and increases the second year to $400 per month, not to exceed $4,800 per year, for each veteran hired. Learn more about additional state tax credits for hiring veterans, and check with your state Department of Labor to learn about the tax benefits of hiring veterans in your state.

2. Relocation Cost Savings

Each branch of the military pays the final relocation costs for its service members, resulting in several thousand dollars in cost savings per hire. The military will also pay for the veteran to put their belongings into storage for up to a full year at no cost, which is especially useful if a training program is required in a different location than where the candidate will ultimately work.

3. Lower Health Care Premiums

Physical fitness is of great importance in the military, and generally speaking, veterans are in good physical condition. This translates into cost savings for employers on health premiums and claims filed by veterans. Retired veterans (who are young as 37) are eligible to receive free health care coverage for life through TRICARE, the military's health care program, as well as reduced cost for their family members. In addition, all separated military members have at least basic eligibility to use the Veterans Administration system for qualified medical issues. Many military reservists choose to use a TRICARE supplement, rather than utilizing their employer's plan.

4. Workplace Safety Cost Reductions

It is estimated that workforce safety injuries cost American industry over $18.3 billion annually. Military professionals are trained to work efficiently while physically overexerted and with quick, precise reactions. Safety is paramount in the military and veterans bring this focus with them to the civilian workforce.

There are many benefits to hiring military professionals. Learn more about the Advantage of choosing Orion as your military employment recruiter.

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