There is nothing worse than winning a bid and realizing you left money on the table and yet so few employers take advantage of programs that would pay them to offset hiring and training costs for entry level employees. Work Opportunity Tax Credit (WOTC) provides employers with $2500-$9000 to offset the cost of onboarding entry level employees. The specific amount is based on the new hire you select.
The WOTC is a federal tax credit available to employers who hire and retain individuals from certain target populations. It’s designed to encourage inclusive hiring practices and reduce the barriers that prevent many capable, motivated individuals from getting a fair chance.
Why it matters:
Employers who hire Project JumpStart participants may be eligible to receive $2,400 and up to $9,600 in tax credits per qualified hire. The exact amount depends on the target group, wages paid, and hours worked—but even a single hire can generate a meaningful tax benefit.
Who qualifies an employer for the WOTC?
Employers may qualify for the credit when they hire individuals from one or more of the following categories:
- Returning citizens (formerly incarcerated)
- Veterans
- Long-term unemployed
- Recipients of SNAP (food stamps) or TANF
- Designated Community Residents (living in high-poverty areas)
- Individuals with disabilities
- And other groups facing employment barriers
How it works:
The process is simple. Employers submit a WOTC pre-screening form (IRS Form 8850) within 28 days of the hire date. If you do not have the bandwidth to submit the required paperwork, there are organizations who provide this service. It’s found money worth pursuing.
Peace of Mind Is Free and Accessible
We already know the upside to hiring formally incarcerated individuals into our organizations, but it can still bring challenges. The Fidelity Bonding Program was designed to help employers embrace this overlooked, but valuable, talent pool.
What is the Fidelity Bonding Program?
The Fidelity Bonding Program provides free, no-deductible insurance coverage to employers who hire individuals considered “at-risk.” Funded by the U.S. Department of Labor and administered in Maryland by the Division of Workforce Development & Adult Learning, this program offers a $5,000 to $25,000 bond for the first six months of employment—at no cost to the employer or the job seeker.
Why It Matters:
Employers may hesitate to take a chance on someone with a complicated background. The Fidelity Bond acts as a safety net, encouraging businesses to give motivated individuals a second chance—especially those completing programs like Project JumpStart, where they’ve demonstrated readiness and a strong work ethic.
Who is eligible?
Fidelity bonding is available for individuals who are:
- Justice-involved (formerly incarcerated/returning citizens)
- In recovery from substance use
- Youth or adults with little or no work history
- Veterans
- Individuals with poor credit or who have experienced dishonesty
- And others facing employment barriers
How it works:
Once a job offer is made, the bond can be issued quickly—often within 24 hours. There’s no application or paperwork required from the employer.
Maximize Your ROI: Hire a JumpStart Graduate
Hiring a JumpStart graduate doesn’t just fill a labor need—it can also boost your bottom line and strengthen your team. Take advantage of these federal programs and make every hire count.
Learn more about these programs; Increase ROI Hiring a JumpStart Graduate | Project JumpStart