Businesses may qualify to receive The Work Opportunity Tax Credit (WOTC) for Veterans. WOTC is a federal income tax benefit administered by the U.S. Department of Labor for employers who hire individuals from specified target populations, including veterans.
This credit reduces a businesses’ federal tax liability to encourage them to select job candidates who may be disadvantaged in their employment search.
The Fidelity Bonding Program was created to assist certain at-risk, but qualified, job applicants who have bona fide offers of employment. Some employers view ex-offenders and other individuals who have questionable backgrounds as high-risk and possibly untrustworthy workers.
What is a fidelity bond?
A fidelity bond is a business insurance policy for employers that hire, retain, or promote at-risk individuals. It is purchased to protect an employer against loss due to employee dishonesty, including theft, forgery, larceny, and embezzlement.
The Fidelity Bonding Program offers a business insurance policy from Union Insurance Group. A covered employee is any worker currently bonded by the Fidelity Bonding Program.
How does the fidelity bond work?
• Bonds are issued starting at $5,000
• Bonds are issued at no cost to the employer, with no deductible
• Bonds serve as an incentive to encourage employers to hire, retain, or promote at-risk individuals
• Fidelity bonding indemnifies a single, specific employer-employee relationship
• Bond insurance becomes effective on the employee’s first day of employment
• The fidelity bond is mailed directly to the employer
• Free fidelity bonding coverage is provided for a six-month period; thereafter, if no claim is made against the bond, it can be renewed through the regular commercial network
Eligibility for bonding services
At-risk individuals eligible for fidelity bonding services include the following:
• Ex-offenders, including individuals with record of arrest, probation or police record
• Individuals with poor credit histories, including bankruptcy
• Veterans dishonorably discharged from the military
• Public assistance recipients
• Individuals with a substance abuse history
• Disadvantaged youth who lack a work history
Requests for fidelity bonding
Either the job applicant or the prospective employer can request bonding through any Workforce Solutions Office.