Work Opportunity Tax Credit (WOTC)

The Work Opportunity Tax Credit (WOTC) is a federal income tax credit that provides incentives to private for-profit employers to encourage the hiring of individuals from certain targeted groups of jobseekers who traditionally have difficulty finding employment.

WOTC Targeted Groups:

• Qualified Temporary Assistance to Needy Families Recipients
• Qualified Veterans/Disabled Veterans
• Qualified Unemployed Veterans
• Qualified Ex-offenders
• Qualified Designated Community Residents (residing in an Empowerment Zone)
• Qualified Vocational Rehabilitation Referrals
• Qualified Summer Youth (residing in an Employment Zone)
• Qualified Food Stamp Recipients
• Qualified Supplemental Security Income Recipients
• Qualified Long-term Family Assistance Recipients

Federal Bonding Program

The Federal Bonding Program is an incentive program that allows employers to hire at-risk job applicants with limited liability. A Federal Fidelity Bond is a business insurance policy that insures the employer for theft, forgery, larceny or embezzlement by the bonded employee.

Eligibility Requirements

At-risk job applicants are:

• Ex-offenders
• Recovering substance abusers (alcohol or drugs)
• Welfare recipients and other persons having poor financial credit, or who have declared bankruptcy
• Economically disadvantaged youth and adults who lack a work history
• Individuals dishonorably discharged from the military
• Anyone who cannot secure employment without bonding services