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Letter from Mayor Newsom

Wednesday, December 2nd, 2009 | Tax News

Below is the full letter from Mayor Newsom, discussing his new JOBS NOW! program.

October 27, 2009

Dear San Francisco Business,

I’m writing to tell you about JOBS NOW! – a powerful economic incentive program for all San Francisco businesses, regardless of industry, size or location. Funded through federal stimulus money secured by the City, JOBS NOW! offers your company a 100% wage subsidy for newly hired qualified employees through September 30, 2010.

Employers are required only to pay for payroll taxes, any fringe benefits that employees typically receive, and supervision of participants. To qualify for the JOBS NOW! wage subsidy, employees must be San Francisco residents with a minor child and have a family income of less than 200% of the federal poverty level in the last 30 days. Someone who was fully employed but recently lost their job more than a month ago is eligible.

The City has already identified hundreds of eligible job candidates who qualify for this program and could bring to your company a 100% wage subsidy for each candidate hired. Your firm can also recruit individuals you would like to hire and send them to the City to see if they are eligible for the wage subsidy. JOBS NOW! has no cap on the number of employees a business can receive a subsidy for and many of these hires may also qualify your firm for valuable state and local Enterprise Zone tax credits.

This is a once in a lifetime opportunity for San Francisco businesses to hire new employees and the City will reimburse you for 100% of their wages paid until September 2010. Many San Francisco businesses are already taking advantage of this program and I encourage you to do the same. Additional information on JOBS NOW! is attached.

If you want to want to learn more or take the next step, call the Office of Economic and Workforce Development at 415-554-6969 and ask about the JOBS NOW! program.

Sincerely,
Gavin Newsom
Mayor
City and County of San Francisco

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JOBS NOW! Subsidized Employment Program
Offering San Francisco Employers a Once in a Lifetime Business Incentive

Overview

All San Francisco businesses, regardless of industry, size or location, are eligible for the JOBS NOW! program – a 100% subsidy of qualified employees’ wages through September 30, 2010. JOBS NOW! is a subsidized employment program funded by stimulus dollars and administered by the San Francisco Human Services Agency (HSA). HSA will reimburse the cost of 100% of the wages paid to a newly hired JOBS NOW! qualified employee through September 30, 2010. Employers are required only to pay for payroll taxes, any fringe benefits that employees typically receive, and supervision of participants. Employers can hire qualified employees they’ve found themselves or leverage a pool of hundreds of JOBS NOW! pre-qualified eligible candidates from HSA.

Eligibility

  • All San Francisco employers, regardless of industry, size or location, are eligible so long as they hire JOBS NOW! eligible employees.
  • To qualify for the JOBS NOW! wage subsidy employees must be San Francisco residents with a minor child and a family income of less than 200% of the federal poverty level in the last 30 days. The level varies by household size but is about $3,000 per month for a family of three.
  • Someone who was fully employed but recently lost their job more than a month ago is eligible.
  • Someone who is currently employed but working less than 25 hours/week and under 200% federal poverty level is eligible.

Requirements

  • JOBS NOW! employees must be paid at least the local minimum wage and compensated at the same rate as other employees performing similar job functions.
  • Employers must comply with labor laws, contribute regular payroll taxes and comply with the City’s existing Health Care Security Ordinance.
  • Employers must be current on business and payroll taxes.
  • Employers are required to document and cover the cost of payroll taxes, fringe benefits, and supervision of JOBS NOW! employees.

Employer Reimbursement Process

  • Employer submits monthly documentation to HSA of all costs incurred related to the employment of a JOBS NOW! participant
  • HSA reimburses 100% of the wage costs
  • Reimbursement typically takes 2-3 weeks initially and 7-10 days thereafter
  • Remaining non-wage costs (payroll taxes, benefits, supervision) are the employer’s responsibility and cannot be paid for with federal funds or funds used to match federal funds

Next Step

If you want to want to learn more call the Office of Economic and Workforce Development at 415-554-6969 and ask about the JOBS NOW! program.

Click here to download the full article (PDF download).

 
 
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