1827 Subsidized Employment Cash Reimbursement | TANF

Georgia Division of Family and Children Services
TANF Policy Manual

Policy Title:

Subsidized Employment Cash Reimbursement

Effective Date:

January 2020

Chapter:

1800

Policy Number:

1827

Previous Policy Number(s):

MT 30

Updated or Reviewed in MT:

MT-53

Requirements

Georgia Division of Family and Children Services (DFCS) will develop supported work programs and provide public or private sector employment for which the employer will receive a subsidy from TANF funds to offset some or all of the wages and cost of employing a TANF recipient.

Basic Considerations

Subsidized employment (SE) is a countable (core) work activity in which the employer receives a subsidy from TANF or other public funds as an incentive to hire and train TANF recipients or TANF-eligible individuals. SE participants will receive wages from employers for all hours of participation.

SE Cash Reimbursement

The subsidized employment-cash reimbursement means that a predetermined percentage of the participant’s salary is paid to the employer to offset some or all of the wages and costs of employing a TANF participant.

A third-party vendor may be used to place participants and to reimburse the employers.

Participants in the SE cash reimbursement program are regular employees and are subject to minimum wage and other Fair Labor Standards Act (FLSA) protections.

A subsidized employment-cash reimbursement placement may begin at any time during the month.

Cash reimbursement to the employer/contractor/vendor is possible only when the earnings from a job are enough to reduce the TANF grant to zero. If the wages received for a job will not reduce the grant to zero, no subsidy can be paid.

Prior to the client beginning employment, a trial budget must be computed that includes only the subsidized earnings to determine the AU’s eligibility for cash assistance.

If the earnings from a job are enough to reduce the grant to zero, the predetermined percentage will be paid to the employer/vendor/contractor.

If the subsidized employment placement ends prior to the date agreed upon in the Form 200 Subsidized Employment Agreement (SEA), the employer will be paid for the days worked by the client during the last calendar month of employment.

Premature Termination of Subsidized Placement

The amount of reimbursement due to the employer is determined by dividing the pre-determined percentage by thirty days, arriving at a daily rate, and multiplying the daily rate by the number of days worked by the client in the final month of employment.

An AU is subject to sanction if the AU member participating in subsidized employment fails to participate after having been referred to an employer.

The voluntary quit policy and ineligibility period must be reviewed before the AU is approved for TANF.

Fixed Cash Reimbursement Amount

The cash reimbursement percentage reimbursed to the employer is fixed beginning with the month of placement in subsidized employment. The percentage remains unchanged for the duration of the client’s participation in the activity.

Program Requirements

Participants in the cash reimbursement program are regular employees and are subject to minimum wage and other Fair Labor Standards Act (FLSA) protections.

The subsidized job must be full-time (minimum 30 hours weekly) and pay at least minimum wage.

The maximum length of the cash reimbursement program is six months.

A Subsidized Employment Agreement (SEA), Form 200 must be completed for each participant.

At the end of subsidy period, the employer is expected to retain the participant as a regular employee without receiving a subsidy.

DFCS staff will follow the procedures listed below prior to referring an A/R to the SE cash reimbursement program:

Assess the applicant/recipient’s job readiness level.
Review the job history to determine applicant’s past job-related skills, experience and expertise.
Assess the A/R’s service needs.
Discuss with the applicant the available support through the vendor/contractor, i.e. job coaching and monitoring.
Explain SE program, procedures, the vendor/contractor’s role and expected length of time.
Discuss potential of career progression for excellent performance.
Explain Voluntary Quit policy and TANF ineligibility period (waiting period).
Arrange required support services including childcare.

Procedures to Determine Eligibility for Participation

Follow the steps below to determine the client’s eligibility for participation in subsidized employment:

Step 1	Obtain a copy of the Form 200, SEA. The agreement includes the beginning date of employment, the salary the employee will receive, and the duration of the training period.
Step 2	Determine the gross earned income the client will receive from subsidized employment earnings.
Step 3	Subtract $90.00 from the gross earned income in Step 2 to determine the net earned income. Compare the net earned income to the standard of need (SON) for the appropriate AU size. Proceed to Step 4 if the income equals or exceeds the SON. If it does, the client is eligible for participation and the vendor/ employer is eligible to receive the predetermined percentage for the placement of TANF participant in subsidized employment program.
Step 4	If the earnings do not cause a loss of TANF eligibility, the client is not eligible for participation in subsidized employment.
Step 5	Complete the Form 200, SEA, indicating the predetermined percentage and the employment dates based on the training period.
Step 6	Scan a copy of the completed Form 200, SEA in the case record to serve as verification of wages and employment. Make the necessary changes on the system and document.