Potential savings in that next hire?
It is tough to find qualified help these days. The workforce shortage leaves employers looking in unlikely places to find their next worker. There are several programs available that might provide some financial benefit to hiring someone from a population that has higher than normal unemployment rates.
Is your prospective worker:
- Short-term or long-term Welfare (MFIP) recipient
- SNAP (food stamp) recipient
- Veteran (SNAP; Disability; Unemployed)
- Designated Community Recipient
- Vocational Rehabilitation Referral
- Supplemental Security Income recipient
- Long-Term Unemployment Recipient (27 consecutive weeks of unemployment with at least 1 week of paid UI benefits)
If so, your new hire may qualify you for tax savings from $2,400 to $9,600. Most tax savings are around $2,400 but Veterans meeting certain criteria might yield a larger savings. Forms IR 8850 and ETA 9061 must be completed at time of hire and submitted within 28 days of the first day of employment.
New employees must work at least 400 hours to receive the full benefit. If they work at least 120 hours, employers may be eligible for a partial refund.
A little concerned about offering a position because of someone’s background? There is a program that allows you to bond an individual for 6 months to protect yourself. Fidelity bonding covers any type of stealing including theft, forgery, larceny, and embezzlement up to $5,000 free of charge to the employer. Bonding does not cover liability due to faulty workmanship, job injuries, and work accidents. If you are hiring someone with
- Record of arrest, conviction, or imprisonment
- Lack of work history
- History of alcohol or drug abuse
- Poor credit history
- Welfare recipient
- Dishonorable discharge
A simple call to the MN Federal Bonding Coordinator could protect you for up to $5,000 for the first six months of employment. 651-259-7521 or 1-888-234-5521