On November 21, 2011 President Obama signed into law the VOW legislation to encourage the hiring of military veterans.
Key provisions of interest to Employers:
- Requires military individuals separating from services to participate in the Transition Assistance Program (TAP). This program is currently voluntary and now is mandatory for all military personnel.
- Directs the federal government to enter into agreements to provide job training assistance that provides veterans with the education, training, and services necessary to transition to employment.
- Provides a new hiring credit called the Returning Heroes and Wounded Warrior Credit as an incentive to hire unemployed veterans. The VOW Act provides a credit of 40% of the first $6,000 in wages (up to $2,400 max) for employers that hire veterans unemployed for at least 4 weeks and credit of up to 40% of the first $14,000 of wages (up to $5,600 max) for veterans who have been unemployed for at least 6 months.
- Changed the tax code to allow 501 (c) tax exempt organizations to claim credits on the employer portion of FICA tax.
Reference: SHRM, 12/2/2011. President Signs Into Law the ‘VOW to Hire Heroes Act of 2011’
