Who is not eligible for a General Program grant?

Modified on Mon, Nov 25 at 1:30 PM

The following entities are not eligible for the Workforce Training Fund General and Express Programs because they do not contribute to the Workforce Training Fund via unemployment insurance surcharge.

Government Agencies

Eligibility: Federal, state, or local government entities do not contribute to state UI, and by extension, the Workforce Training Fund, and are not eligible to take part in any General Program grant-funded training.

Community Colleges

Eligibility: Community colleges are not eligible for WTFP grant funding as they are exempt from income tax under section 501(c)(3) of the Internal Revenue Code. Organizations exempt from such a tax are also exempt from obligations outlined under the Federal Unemployment Tax Act (FUTA), and hence do not contribute o the Workforce Training Fund (WTF). This exemption cannot be waived (Exempt Organizations: What Are Employment Taxes? | Internal Revenue Service, n.d.).

Sole Proprietorship

If you are a Sole Proprietor of a limited liability company (LLC), and you have W-2 employees for whom you pay into unemployment, your employees may be eligible—but you would not be eligible as you do not pay into unemployment for yourself.

DISCLAIMER: This article is only intended as a guide to General Program applicants. We also encourage applicants to consult with their Chief Financial Officer, accountant, payroll company, or another financial professional to verify eligibility criteria are met. Businesses that submit applications to the General Program are verified for compliance with Workforce Training Fund regulations by the Massachusetts Department of Unemployment Assistance and Commonwealth Corporation staff.

Sources:

Exempt Organizations: What Are Employment Taxes? | Internal Revenue Service. (n.d.). https://www.irs.gov/charities-non-profits/exempt-organizations-what-are-employment-taxes