Important tax document for employees receiving a Nursing Facility Workforce Incentive Grant

By Todd Bergstrom  |  January 17, 2025  |  SNF/NF providers

The Nursing Facility Workforce Incentive Grant program provided funding for nursing facility employees earning less than $30 per hour to receive up to $3,000 in bonuses and other qualified benefits between October 1, 2023, and September 30, 2024.

Since the Nursing Facility Workforce Incentive Grant program exempts the payment to employees from the state income tax, how will employees report on their 2024 tax return? 

Last year, the Minnesota Department of Revenue created a template for employers to provide to employees receiving a Nursing Facility Workforce Incentive Grant. Care Providers of Minnesota has posted an updated, “Workforce incentive grants—Employer summary template from MN Dept. of Revenue,” to the Association website.

When providing W2s for 2024, nursing facilities should use the template to provide employees with their information to avoid paying state income taxes on the receipt of a Nursing Facility Workforce Incentive Grant. Employees should keep the document and include it with their tax records.

For additional information please see the document, “Nursing Facility Workforce Incentive Grant Program FAQs.”
 
Please contact Todd Bergstrom at the Association office if you have any questions. 


Todd Bergstrom
Todd Bergstrom  |  Director of Research and Data Analysis  |   tbergstrom@careproviders.org  |  952-851-2486