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Newsletter
A Government Hand-out for Businesses: Wage Subsidies
If you have interest in hiring a $15 per hour employee while paying only $3 per hour, you will want to read this.
The Georgia Department of Human Services is giving businesses an 80% subsidy for hiring workers under a new program made possible by the American Recovery and Reinvestment Act of 2009.
The program runs through September 30, 2010 and applies to newly hired employees who work at least 30 hours per week at minimum wage or above. The maximum subsidy per employee is $26,000 and an employer cannot replace existing employees with new employees to qualify for it. In other words, if there was a layoff after January 1, 2010 or if an existing employee is fired to make room for an employee eligible for the program, no 80% subsidy will be paid.
The subsidy is made available only to employees who meet one of the following eligibility requirements:
- Adults with dependent children and an annual income below $66,000
- Adults receiving Temporary Assistance for Needy Families (TANF)
- Parents participating in the Child Support Fatherhood program with TANF-eligible kids
Information about this special program can be obtained from the Georgia Department of Human Services (DHS) by calling 404-657-7807 or emailing TANF-Sub-Employers@dhr.state.ga.us.
Interested businesses need to enter into a Memorandum of Understanding with DHS in which the employer agrees to provide training and supervision, to submit an invoice of wage payments each pay period, and to inform DHS of terminated employees under the program. DHS then refers employees and reimburses 80% of wages within seven days of receiving the invoice. Decisions on hiring are made by the employer, not the government. The business does have to give DHS a right of audit of the payroll records and related documents.
For more information on this program, please contact:
Kimberly Skalski, CPA at 770-671-1533, ext. 211 kskalski@largeandgilbert.com
or
Will Floyd, CPA at 770-671-1533, ext. 246 wfloyd@largeandgilbert.com
Please contact the following for assistance:
Gary Fortier: 770-671-1533 ext 213 or gfortier@largeandgilbert.com
Bobby Lauman: 770-671-1533 ext 221 or blauman@largeandgilbert.com
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Testimonials
"Our newsletter and email blasts are designed
to enlighten our clients on the major opportunities and hazards
that abound with running a business in an ever-changing environment.
As we learn of new directions being mapped in Congress, we inform
our clients about how pending developments could affect them.
One day it might be the FDIC rules that can either help protect
or delude an investor into thinking their money is protected. Another
day it might be an IRS audit strategic development that attacks
certain kinds of losses. Or maybe it's about both the advantages
and pitfalls of rebuilding in a post-hurricane zone. And then of
course there is the ever-present estate and gift tax law, which
presents unique challenges with planning the succession of a business.
We do our best to make our clients promptly aware of the regulatory
mandates that are out there, the penalties for non-compliance, and
the ways to minimize risk while exploiting available tax and financial
benefits. And we try to communicate that in plain English without
confusing technical jargon."
Joe Skalski
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