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How the Federal Bonding Program Impacts Your Business
During the middle of the
Great Resignation, it can be difficult to find candidates who have what it takes to work for your business. However, sometimes the best employees are those who have had a hard past (and are thus more grateful for new opportunities). In order to give these potential candidates a chance, the federal government has created the Federal Bonding Program. Here’s what that means for you as a small business owner, and how that can help you in the long run.
What is the Federal Bonding Program?
The Federal Bonding Program was created as an incentive to encourage business owners to hire at-risk job applicants with limited liability. This is a business insurance policy which insures the employer against theft, forgery, embezzlement, and larceny from an “at risk employee.”
This program does not cover an employee’s poor workmanship, job injuries or work accidents, but these are all things which can be mitigated with the proper training and procedures.
Of course, there are other ways to mitigate the financial cost of these mistakes. A Yoke Tax professional with over 20 years of experience will know a variety of ways to save you money on these issues come tax season. Connect with one for a free consultation whenever suits you best.
Who counts as an at risk applicant?
The people who the Federal Bonding Program is trying to incentivize back into the workforce are those who have lower chances than the average worker, for whatever reason. These at-risk applicants include
- Ex-offenders
- Recovering substance abusers
- Those dishonorably discharged from the military
- Welfare recipients
- Those with poor credit or those who have declared bankruptcy
How does this benefit you, exactly?
Because the Federal Bonding Program provides a $5,000 bond on each employee who falls into the “at-risk” designation, this gives you a bit of leeway in hiring employees you otherwise wouldn’t consider. There’s no doubt that some of these applicants are simply bad apples, but that is not the case for all of them. There are many who are just looking for an opportunity to start over on the right foot.
As a business owner, you have the opportunity to change someone’s life for the better. The Federal Bonding Program intends to make that decision a lot less taxing. In fact, you can double your benefits by using the Federal Bonding Program in tandem with the Work Opportunity Tax Credit.
Before you do anything, it’s always best to consult a tax professional to see how this can benefit you in the short and long term. There are several other small incentive programs provided by federal and state governments which can help lower your taxes next April, and a tax pro can help you utilize them effectively. Set up a free consultation today.
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