Many employers are unaware that hiring through workforce development programs like BridgeWorks can qualify them for significant financial incentives. Federal and state tax credits, wage subsidies, and other programs are designed to encourage employers to hire from populations that face barriers to employment. These incentives can substantially offset onboarding costs and make inclusive hiring practices even more attractive from a business perspective.
The Work Opportunity Tax Credit
The most widely available incentive is the Work Opportunity Tax Credit, commonly known as WOTC. This federal tax credit is available to employers who hire individuals from specific target groups, including veterans, individuals who have received certain public assistance, ex-felons, and long-term unemployed workers. Many BridgeWorks graduates qualify under one or more of these categories.
The credit amount varies based on the employee's wages and hours worked during the first year of employment. For most qualifying hires, the credit ranges from $2,400 to $9,600 per employee. For employers hiring multiple BridgeWorks graduates per year, the cumulative value can be substantial.
The application process requires completing specific forms before or on the day the employee starts work. BridgeWorks assists employer partners with the documentation and timing requirements to ensure credits are properly captured.
Federal Bonding Program
The Federal Bonding Program provides fidelity bonds at no cost to employers who hire individuals with criminal records, those in recovery from substance use disorders, and others who face significant employment barriers. These bonds protect the employer against losses due to employee dishonesty during the first six months of employment.
For employers who may be hesitant about hiring individuals with criminal backgrounds, the bonding program reduces financial risk while giving qualified candidates the opportunity to demonstrate their reliability. BridgeWorks can facilitate bonding for any qualifying graduate through our partnership with the state bonding coordinator.
State and Local Incentives
Beyond federal programs, many states and municipalities offer additional incentives for employers who participate in workforce development hiring. These may include wage subsidies that reimburse a portion of a new employee's salary during a training period, reduced unemployment insurance rates for employers with strong retention records, grants for on-the-job training that support skill development specific to the employer's needs, and tax credits for employers located in designated economic development zones.
The specifics vary significantly by location. Our employer relations team maintains current information on available incentives in our service region and can help partners identify which programs apply to their situation.
On-the-Job Training Reimbursement
Through our partnerships with the local workforce development board, BridgeWorks can arrange on-the-job training agreements that reimburse employers for a portion of a new hire's wages during their initial training period. These agreements recognize that new employees require an investment of time and resources to become fully productive, and they offset that cost for the employer.
Reimbursement rates typically cover 50 percent of the employee's wages for a defined training period, usually between four and twelve weeks. The arrangement benefits everyone: the employer receives financial support during the onboarding period, the employee receives structured training in a real work environment, and BridgeWorks ensures that the training meets quality standards.
How to Get Started
Employer partners who want to take advantage of these incentives should contact our employer relations team. We provide a comprehensive assessment of which programs each partner qualifies for, assist with paperwork and compliance requirements, and track credits and reimbursements through to completion.
These incentives exist because policymakers recognize that inclusive hiring benefits the entire economy. Employers who participate are not just accessing tax savings. They are investing in their workforce, their communities, and a more equitable labor market.
BridgeWorks is here to make the process straightforward. If you are already a partner, ask your account representative about incentives you may be leaving on the table. If you are considering a partnership, these programs are one more reason to take the next step.
