Work Opportunity Tax Credit is a federal tax credit used to reduce the federal tax liability of private-for-profit employers. Employers can hire from eight different targeted groups.
. The Texas Workforce Commission offers free fidelity bonding services designed to eliminate bonding as a barrier to employment and alleviate employer concerns about hiring "at-risk" job applicants.
IRS Tax Credits
. There are actually quite a few tax credits available to help businesses.
Skills Development Fund
. A business, consortium of business, or a trade union identifies a training need, then partners with a public community or technical college to fill its specific needs. Businesses work with college partners to submit proposals, develop curricula and conduct training. The Skills Development Fund pays for the training, the college administers the grant, and businesses create new jobs and improve the skills of their workers. Here's how it works
A public community, technical college or the Texas Engineering Extension Service is the grant applicant, fiscal agent, and coordinator for the training executed under a Skills Development Fund Grant Project.
Skills Development Fund grants can cover tuition, curriculum development, instructor fees and training materials. Training includes:
- Tailored curriculum.
- Classes conducted at the employer's site or at the training provider's location.
- Flexible class schedules to minimize impact to employers.
- Addressing company needs in real time with real situations.
Project proposal submissions are accepted throughout the year. Projects typically are executed over a 12-month period.
The Self-Sufficiency Fund Program, administered by the Texas Workforce Commission (TWC), assists businesses by designing, financing and implementing customized job training programs in partnership with public community and technical colleges, a higher education extension service, and community-based organizations for the creation of new jobs and/or the retraining of existing workforce. The goal of the Self-Sufficiency Fund is to assist recipients of Temporary Assistance for Needy Families (TANF), Supplemental Nutritional Assistance Program (SNAP), or a parent, including a noncustodial parent, whose annual wages are at or below $37,000, to obtain training, find jobs, and become independent of government financial assistance.
On-The-Job and Customized Training
Eligible employers must commit to hiring and retaining participants who successfully complete their training programs. Employers who have exhibited a pattern of not retaining participants are not allowed to continue participating in these types of training. The actual terms and duration of the training activities are formalized contractually after negotiations between the employer and the local program operator.
Focused on jobs involving the introduction of new technologies, production or service procedures; upgrading to new jobs that require additional skills or workplace literacy; or other appropriate purposes identified by the Board.
- OJT provides knowledge or skills essential to the full and adequate performance of the job.
- The employer is reimbursed up to 50% of the wage rate of the individual for the extraordinary costs of providing the training and increased supervision related to the training.
- OJT is limited in duration based upon the target occupation for which the participant is being trained, the participant’s prior work experience and the service strategy.
Customized Training is Training:
- That is designed to meet the special requirements of an employer (including a group of employers).
- That is conducted with a commitment by the employer to employ an individual on successful completion of the training.
- For which the employer pays for not less than 50% of the cost of the training.
- The employer can be in the public, private non-profit or private sector.