Employer Incentives and Funding Tools

Incentives can support employer buy-in when presented as optional tools that complement a broader talent strategy. This section summarizes common incentives and key steps.

Work Opportunity Tax Credit (WOTC)

Certification requests require submission of IRS Form 8850 with ETA forms to the state workforce agency within required timelines.
Note, Form 8850 is the employer pre‑screening and certification request used to start the WOTC process with the State Workforce Agency, however, the IRS notes it is no longer in use because WOTC does not apply to employees who begin work after December 31, 2025 (unless reauthorized).
The credit is calculated and claimed using IRS Form 5884 where eligible.

Official WOTC filing steps and Form 5884 guidance are provided by the U.S. Department of Labor and IRS. [12][11]

How to File a WOTC Certification Request (DOL/ETA): This page explains the required submission process (e.g., Form 8850 + ETA 9061/9062 to the State Workforce Agency within 28 days of start date).
About Form 5884, Work Opportunity Credit (IRS): This IRS page provides the official description of Form 5884, links to the current form and instructions, and explains that employers use it to claim the WOTC. [irs.gov]

Federal Bonding Program

Fidelity bonds can reduce perceived risk for hiring individuals with barriers to employment.
Bonding is typically time-limited and designed as a hiring incentive.

Program information is provided by the U.S. Department of Labor Employment and Training Administration (ETA) Federal Bonding Program page. [13]

OJT reimbursement

Reimbursement is typically up to 50% of wages and may be up to 75% in limited circumstances for extraordinary training and supervision costs, consistent with regulation and local policy.
Contracts should not be used with employers demonstrating patterns of failing to retain participants as regular employees.

OJT requirements and reimbursement guidance are established in federal regulation. [10]

Section 11 provides a DOL reporting and documentation framework, including WIOA indicators, reporting artifacts, and documentation checklists for services such as work experience, OJT, internships, and transitional jobs.

References

[10] eCFR – 20 CFR 680.700 On-the-Job Training Requirements. https://www.ecfr.gov/current/title-20/chapter-V/part-680/subpart-F/section-680.700

[11] IRS – About Form 5884 (Work Opportunity Credit). https://www.irs.gov/forms-pubs/about-form-5884

[12] U.S. Department of Labor – How to File a WOTC Certification Request. https://www.dol.gov/agencies/eta/wotc/how-to-file

[13] U.S. Department of Labor – Federal Bonding Program. https://www.dol.gov/agencies/eta/federal-bonding-program