Employer's Guide

Work Opportunity Tax Credit

The Work Opportunity Tax Credit (WOTC) offers an incentive for employers to hire target group members who have certain barriers to employment. By employing target group members, an employer can lower their federal income tax liability by claiming up to $2,400 per each qualified new hire.

Tax Incentives

Target groups include:

Temporary Assistance for Needy Families (TANF) recipients
Veterans (recent food stamp recipients)
Qualified ex-felons
Vocational Rehabilitation referrals
Food-stamp (FS) recipients 18-24 years of age
Supplemental Security Income (SSI) recipients

Fidelity Bonding Program of Michigan

The Fidelity Bonding Program (FBP) is also designed to assist in securing jobs for high-risk job seekers.
It is one of many employment programs and services that is offered to employers to attract and retain a qualified workforce. The program is offered to high-risk job seekers to help them obtain jobs that lead to a career.
The state provides a web site for your reference: www.michigan.gov/fidelitybonding

Federal Bonding Program (click here)

Federal Bonding Program Background

Federal Bonding Program Highlights

In 1966 the U.S. Department of Labor established The Federal Bonding Program to provide Fidelity Bonds that guarantee honesty for “at-risk”, hard-to-place job seekers. The bonds cover the first six months of employment. There is no cost to the job applicant or the employer. In most states the bonds are made available through the state agency responsible for workforce matters.  The Federal Bonding Program is a partnership between the
U. S. Department of Labor and The McLaughlin Company, an insurance brokerage firm, as agent for Travelers Casualty and Surety Company of America.

Risk factors include:

Criminal history - record of arrest, conviction or imprisonment; anyone who has ever been on parole or probation, or has any police record
Substance abuse - rehabilitated or participating in treatment for alcohol or drug abuse
Credit history - poor credit record or have declared bankruptcy
Dishonorable discharge from the military
Lack of work history and from a low income family

Working with U.S. Probation and Pretrial Services

While under the supervision of U.S. Probation and Pretrial Services, it is our responsibility to assess the risk to the community as well as monitor the conditions imposed by the court. As a result, many individuals under our supervision participate in random drug screening; they must be in contact with their assigned supervision officer on a monthly basis; and barriers to employment (i.e. substance abuse, mental health) are identified and minimized through treatment and close monitoring.

Benefits of hiring individuals under our supervision:

Probation officers are a direct point-of-contact and will provide continued support by intervening if problems arise.
Individuals are guided to seek employment in areas in which interest and abilities meet the work requirements; thus improving the likelihood of job retention.
By reducing the risk of re-offending behavior, the community benefits with safer neighborhoods.
Employed defendants and offenders become tax-paying citizens.  Many individuals must maintain employment and submit to random drug testing as conditions of supervision.
We are engaged with many community partners who can provide wrap-around services to those who are ready and motivated to change.