The following types of wages may be subsidized with BFET funds as part of a SWBL activity, provided they meet all other Federal criteria as an allowable cost:
•Wages earned through participation in an approved WBL component up to the local minimum wage.
•Wages paid for classroom training or simulated work that readies participants for employment.
•Stipends paid as a form of a wage.
•Providers must disclose if they are paying 100% of the participant’s wages.
The following types of administrative costs are allowable for reimbursement with BFET funds, provided they meet all other Federal criteria as an allowable cost:
•Workers’ compensation
•Payroll taxes paid by the employer.
•Direct and indirect costs associated with training and administering the program.
The following types of costs are not considered eligible for reimbursement with BFET funds (see 7 CFR 273.7(d)(1)(ii)(A)):
•BFET participant wages in OJT
•Benefits, such as health and dental insurance. Employers must provide the same benefits to program participants as any other worker doing comparable work.
•Disability insurance
•Life Insurance
•Bonus’, and other incentive payments including, but not limited to; recruitment and retention bonuses and performance-based bonuses.
For On-The-Job Training (OJT), the following administrative costs are allowed for reimbursement:
•Salaries and benefits of staff running the training.
•Payroll taxes for participants (including L&I)
•Extraordinary costs to conduct the training.
Allowable Reimbursements Table
|
Activity |
Description |
Subsidized WBL |
Unsubsidized WBL |
|
Internship |
Planned, structured learning experience that takes place in a workplace for a limited time to provide practical experience for beginner entry-level participant in an occupation or profession. |
•Administrative costs •SWBL Wages •Participant Reimbursements |
•Administrative costs •Participant Reimbursements |
|
Pre-Apprenticeship |
Instruction and/or training to increase math, literacy, and other vocational and pre-vocational skills needed to enter a Registered Apprenticeship program. |
•Administrative costs •SWBL Wages •Participant Reimbursements |
•Administrative costs •Participant Reimbursements |
|
Apprenticeship |
Program or position in which someone learns a trade by working under a certified expert. |
•Administrative costs •SWBL Wages •Participant Reimbursements |
•Administrative costs •Participant Reimbursements |
|
On the Job Training |
Program that provides occupational training with a goal of permanent employment in their placement. |
Not applicable |
•Administrative costs •Participant Reimbursements |