Who is not eligible for a General Program grant?

TABLE OF CONTENTS

• Basic Eligibility
• Are Community College eligible for funding through the General Program?
• Are Government Agencies eligible for funding through the General Program?
• My business is non-profit, am I eligible for funding through the General Program?
• I have sole proprietor business, am I eligible to apply for the General Program?
• Is my business eligible for a General Program grant if my headquarters is located outside of Massachusetts?

Basic Eligibility

To determine if your organization is eligible to receive a General Program grant through the Workforce Training Fund, a key piece of information you’ll need to know is if and how your organization pays into the Massachusetts Unemployment Insurance (MA UI) system. This is because the Workforce Training Fund derives its funds from a small surcharge levied on payments made by businesses to state UI via the contributory method.

Eligible Organizations: Typically, for-profit companies and non-profit companies who make regular, quarterly payments into MA UI.

Are Community College eligible for funding through the General Program?

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 to the Workforce Training Fund (WTF). This exemption cannot be waived (Exempt Organizations: What Are Employment Taxes? | Internal Revenue Service, n.d.).

Are Government Agencies eligible for funding through the General Program?

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.

My business is non-profit, am I eligible for funding through the General Program?

Nonprofits that select the “contributory method” to finance Unemployment Insurance contribute to the Workforce Training Fund, via a surcharge of Unemployment Insurance (UI) contributions and are eligible to apply for WTFP funding. 

Nonprofits that select the reimbursable method are self-insured and are paying a discounted rate that does not include a contribution to the Workforce Training Fund and are not eligible to apply for WTFP funding.

If you are uncertain how you pay your Unemployment Insurance payments, you may consult with your organization's finance or human resources department. If you're a smaller organization, you may contact your payroll system provider directly.
 

To learn more about Unemployment Insurance rates and contributions please click here to learn more.

I have sole proprietor business, am I eligible to apply for the General Program?

Many sole proprietors do not pay into the Workforce Training Fund, as they do not pay into unemployment insurance through the Massachusetts Department of Unemployment Assistance for themselves. This means most single sole proprietors are ineligible for training reimbursement through the General Program.

For Sole Proprietors to qualify for WTFP grants, they must have W-2 employees and pay the state tax on unemployment insurance. The Massachusetts Unemployment Insurance law requires for-profit employers to contribute to the UI Trust Fund if their business meets the following conditions: a) The employer has one or more employees working on a permanent, temporary, or part-time basis, on 1 or more days in each of 13 weeks during a calendar year; or b) The employer pay wages of $1,500 or more in any calendar quarter (Commonwealth of Massachusetts, n.d.) 

Is my business eligible for a General Program grant if my headquarters is located outside of Massachusetts?

A business with headquarters outside of Massachusetts that has an office based within the state of MA may qualify for a General Program grant. The company must pay taxes to the state and have a payroll setup in MA, all W-2 employees under payroll in MA would then qualify for General Program grant dollars assuming all eligibility and guidelines of the General Program are followed.

Please note: Individual trainees are not required to live in Massachusetts, but Massachusetts must be their primary workplace, and payroll taxes must be paid to Massachusetts for all trainees.

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 

Commonwealth of Massachusetts. (n.d.). Employers subject to unemployment insurance (UI) contributions. https://www.mass.gov/service-details/employers-subject-to-unemployment-insurance-ui-contributions