Hiring Credits

Senator Tim Kaine Proposes Addition of Military Spouses to WOTC Eligibility



Jeff Aleixo

military spouses employment act

Within the past year, we have seen changes and additions to The Work Opportunity Tax Credit. There
has been a retroactive extension and the addition of the Long-Term Unemployed to eligible WOTC
recipients. Now, another addition to WOTC is being proposed, a tax credit to employers for hiring
military spouses.

The Military Spouse Employment Act of 2018

The bill is known as The Military Spouse Employment Act of 2018. Senator Tim Kaine from Virginia,
Senator John Boozman (R-AR), and Jon Tester (D-MT) are introducing the bill. The goal is to hire
underemployed and unemployed military spouses. Reports indicate between 12-25% of military spouses
are unemployed, with another 25% of military spouses underemployed.

According to Federal News Radio, Senator Tim Kaine (D-VA), decided to propose the bill after a meeting
with military spouses and employers in October. Kain further explained the idea for the bill came from
the notion of “getting an interview and having an employer look at you and say ‘Wow, you’re really
qualified, but boy, you’re probably going to have to move in a year and a half, maybe I should hire
someone who is going to be here longer.”

Flexible Spending Accounts for Childcare

On top of hiring initiatives for military spouses, the bill also pushes to provide access to flexible
spending accounts for childcare. This would provide a pre-tax option to savings similar to what many
large organizations offer in The United States. Lack of funds for childcare or reliable options for
childcare greatly affect the ability for both spouses to remain employed.

The Military Spouse Employment Act will stand behind not only military personnel but also their
families. The bill will add a new level of support for military spouses by encouraging employers to hire
qualified individuals who often get passed up on opportunities due to circumstances out of their control.
The bill will also provide childcare saving options not currently available to military personnel.

Follow our blog for the latest updates on The Military Spouse Employment Act and The Work Opportunity Tax Credit. To learn how Emptech can assist you in screening for WOTC and obtaining all available tax credits, feel free to reach out at info@emptech.com or give us a call at 800-518-3874.

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