Tax Update- Massachusetts Workforce Training Fund Overview (WTFP)

The Workforce Training Fund is a state fund enacted into law in July 1998 and financed entirely by Massachusetts employers. Its purpose is to provide resources to Massachusetts businesses and workers to train current and newly hired employees.

Mostly all employers that are subject to Massachusetts state unemployment taxes on their employees are eligible for grants. A recent certificate of good standing from the Massachusetts Department of Revenue will also be required to receive the grant. There are two separate categories of grants that are awarded for employee training: Regular Grants and Hiring Incentives Training Grants. An employer may be awarded grants from each category in a given year, subject to various limitations.

Regular Grants

Express Grants

Who qualifies? Awarded to companies that consist of 50 employees or less.
When must I apply? There are no deadlines for this grant and applications can be submitted at any time.
What training can I do? Only pre-qualified courses are eligible, see the Massachusetts Department of Workforce Develepment web site for available courses.
How much will I get? Grant requests can be up to $30,000 for a 2-year period, not to exceed $3,000 per course per trainee.
How will I find out if I get the grant? Applications are done online, notification if grant will be received is typically 5 days after submission of application.

General *NEXT APPLICATION DEADLINE September 2011*

Who qualifies? Companies of all sizes are eligible to apply.
When must I apply? Applications were subject to announced deadlines, but they are currently switching to a rolling process for applications as of September.
What training can I do? Pre-qualified courses are eligible and any other new training that generally improves the transferable and measurable skills of the employee.
How much will I get? Grants of up to $250,000 may be awarded.
How will I find out if I get the grant? Applications are submitted generally in writing, notification if grant will be received is within 60 days during a open grant period. (There is discussion but it has not been decided that the application process may move completely online in September).

Hiring Incentives Training Grants

Who qualifies? Companies of all sizes are eligible to apply. Must be related to Massachusetts residents and certain pre-screening needs to occur for the eligible employee.
When must I apply? Application must be submitted within 30 days of new hire's start date of employment.
What training can I do? Pre-qualified courses are eligible and generally any other training for the employee is also eligible.
How much will I get? Total grant request cannot exceed $30,000 per company not to exceed $2,000 per newly hired employee.
How will I find out if I get the grant? Applications are done online, notification if grant will be received is typically 5 days after submission of application.

The grants are subject to employer matching. If $30,000 is awarded to an employer, this would require a $30,000 matching contribution on the employer side. However, employee wages paid by the employer while on training would generally be considered part of this matching contribution.

Please contact Feeley & Driscoll's Massachusetts Accounting team by Email or call us at 1 (888) 875-9770.