Typical Cost Saving Benefits Associated with Hiring Veterans
Tax Benefits to Hiring Veterans
On December 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) that extends and modifies the Work Opportunity Tax Credit Program (WOTC), resulting in an extension of the Returning Heroes and Wounded Warrior Credits. Both of these credits expired on December 31, 2014, but were retroactively reinstated for 2015 and extended through the end of 2019. These credits, in addition to the Differential Wage Payment Credit, offer three ways your company can claim tax credits for employing qualifying 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.
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, especially useful if a training program is required in a different location than where the candidate will ultimately work.
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.
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. You can also Contact us today to learn more about adding veterans to your organization.