A recent state measure is designed to reduce Illinois unemployment among veterans. Under the Veterans Tax Credit program, employers will receive a tax credit of up to $600 every time they hire a qualified veteran. Various state departments including the Dept. of Veterans’ Affairs (IDVA), the Dept. of Revenue (IDR), the Dept. of Employment Security, the Dept. of Transportation, Central Management Services, the Dept. of Commerce and the Office of Economic Opportunity will promote the tax credit through their agencies.
“Our veterans put themselves in harm’s way to protect our freedom. When they come home to Illinois, they should be able to find jobs and get the benefits they’ve earned. Both our veterans and businesses will benefit from the new tax credit and I want to encourage all employers to participate,” said Illinois Governor Rod Blagojevich.
Beginning in tax year 2007, Illinois employers can earn tax credits for hiring veterans who have recently been on active duty overseas.
“After returning home from serving our country, our veterans deserve to have access to quality jobs. This tax credit is an incentive for businesses to hire our veterans, and in turn, receive qualified and dedicated employees,” said IDVA Acting Director L. Tammy Duckworth. “With this incentive, Governor Blagojevich demonstrates his continued support for our veterans.”
The tax credit is 5% of total wages paid to the veteran, up to a maximum o $600 annually for each veteran hired after January 1, 2007.
In order to qualify, a veteran must work at least 185 days during the tax year. The credit is available for veterans who were members of the Armed Forces, the Armed Force reserves, or the Illinois National Guard on active duty in operation Desert Storm, Operation Enduring Freedom, or Operation Iraqi Freedom.
“It is important to let employers know of the availability of this new credit so they can claim it when they file their tax returns next year,” said IDR Director Brian Hamer.
Illinois’ unemployment insurance system shields hundreds of thousands of workers each year from the full effects of temporary joblessness. Unemployment benefits partially offset lost wages, enabling workers to maintain themselves and their families while they search for new jobs. In turn, the dollars they put back into the economy fuel business, reducing further job loss. Without unemployment insurance, economic downturns would become more disruptive. This information os contained on the Illinois Unemployment Insurance posters.
Through state unemployment taxes, employers supply the funds IDES uses to pay weekly benefits to the eligible unemployed. Employers may contribute federal unemployment taxes to fund IDES’ administration of both the unemployment insurance and Employment Service programs.
Employers provide IDES with information that helps determine which of your former employees are entitled to receive benefits. Employers also contribute to the program by providing access to Illinois Unemployment Insurance posters
Earnings requirements require an employee too have earned at least $1,600 during a recent 12-month period known as the base period as explained on Illinois Unemployment Insurance posters. An employee must have substantial earnings in two of the four quarters. The staff in local offices can provide specific information regarding how base periods apply to the employee.
The employer must be subject to the state’s unemployment insurance law. Among the types of work not covered are some agricultural, domestic and railroad work, some special government work, some work done for one’s family, and some work done on commission. An employee must either be entirely out of work or be working less than full-time because no more work is available, and the employee’s earnings must fall below a certain threshold determined at the time a claim is made.
The employee’s unemployment must be involuntary. Illinois Unemployment Insurance posters discuss how an employee may be ineligible for benefits. Employees may be disqualified if they quit their job voluntarily without good cause attributable to their employer; were discharged for misconduct in connection with their work; were discharged for a felony or theft in connection with their work; or are out of work because of a labor dispute.