FINANCIAL INCENTIVES

Description

About this Module

Transcript

Read Along

Downloads

3 Documents

Related Resources

1 Resource

FINANCIAL INCENTIVES

There are two primary financial incentives available to companies who employ individuals with criminal backgrounds. The Work Opportunity Tax Credit (WOTC) is a federal tax credit, designed as an incentive for businesses to hire individuals that consistently face significant barriers to employment. The main objective of the WOTC is to enable the targeted employees to gradually move from economic dependency into self-sufficiency as they earn a steady income and become contributing taxpayers. Participating employers are compensated through a reduced federal income tax liability. If a company is interested in filing for the WOTC but doesn't have the time or staffing to complete the process, there are third party vendors available that focus solely on obtaining the WOTC benefits for eligible employers. These vendors charge a flat rate or retain a percentage of the tax credit received after the process is complete.

Additionally, the federal bonding program allows employers to receive $5,000 fidelity bonds, free of charge, as an incentive to hire job seekers that do not qualify for commercial fidelity bonds. This program is sponsored by the U.S. Department of Labor, and the bonds are issued by Fidelity Insurance through the McLaughlin Company, an agent for Travelers Insurance Company that protects employers against employee theft.