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Federal Bonding provides employers with limited liability coverage at no cost when they hire job applicants who cannot be covered by a commercial bond. A Federal Fidelity Bond from Travelers Insurance is a business policy that insures employers against theft, forgery, larceny, or embezzlement by the bonded employee. If you are interested in this type of coverage, please contact your local American Business Center or the US Department of Labor grantee with whom you are working. Check out the certification form and sample confirmation letter issued to you when the bonding request has been processed.

Fidelity Bond Certification Form
(Download fidelityBondCertificationForm.doc)

Sample Letter to Employer Confirming Bonding
(Download sampleLetterToEmployer.doc)

For additional information visit: www.bonds4jobs.com or call 1.877.US2.JOBS (1.877.872.5627).

The UNICOR Bonding program is designed to provide theft insurance to employers who hire ex-Federal offenders. The Inmate Transition branch of the Federal Bureau of Prisons/UNICOR administers the program. Bonding coverage up to $5,000 is available to employers that hire ex-Federal offenders.

Employers that have hired eligible justice-impacted may apply (on a standard application form) for the insurance, at no cost to the employer or employee. The initial bond, paid for by UNICOR, covers the first six months of employment and is renewable by the employer at commercial rates. In the event of theft of money or property the provided insurance will reimburse the employer up to the bond value.

Eligibility: An justice-impacted must have worked in UNICOR for at least six months during incarceration in a Federal correctional institution and must seek coverage within one year after release. Each offender will be entitled to coverage for one job after residence in a Residential Re-entry Center (RCC) or half-way house is completed.

For additional information:

Contact an ITB Federal Bonding Specialist at 202.305.3553 or email
BOP-FPI/Inmate_Transition@bop.gov
Visit the UNICOR Bonding Program

The Work Opportunity Tax Credit (WOTC) is a Federal tax credit available to employers for hiring individuals from certain target groups who have consistently faced challenges in finding employment—including individuals with past criminal involvement.

WOTC joins other workforce strategies that incentivize workplace diversity and facilitate access to good jobs for American workers. Participating employers are able to reduce their income tax liability by receiving a tax credit that ranges from $1,200 to $9,600, depending on the employee hired.

As an employer, your first step is to make a written request to your state workforce agency (SWA), certifying that your designated candidates/employees are members of a target group that qualifies for the credit.

After the required certification is secured, taxable employers claim the tax credit as a general business credit against their income tax. The process for taxable employers claiming the WOTC remains the same.

For additional information, see:

• Form 5884 (with instructions)
• Form 3800 (PDF)
• Instructions for Form 3800
• Your business’s related income tax return and instructions (i.e., Forms 1040, 1041, 1120, etc.)

Or visit the Internal Revenue Service’s Work Opportunities Tax Credit Frequently Asked Questions and Answers for additional information.

You should also note that many state and local governments offer tax credits and other incentives to employers who hire formerly incarcerated individuals. You can check with your State and Local Revenue Departments for additional information and instructions on their process as well.