To encourage local employers to hire Welfare Transition participants, the Welfare Transition program offers various incentives including the following:
The Work Opportunity Tax Credit (WOTC)
The WOTC is offered to private for profit employers as an incentive to hire certain target groups including Welfare Transition participants. Employers can receive tax credits equal to 40 percent of qualified wages for a maximum allowable credit of $2,400 per employee if the individual works more than 400 hours. If the individual works more than 120 hours but less than 400 hours, a tax credit equal to 25 percent of qualified wages for a maximum allowable credit of $1,500 can be received. There is no limit to the number of employees for which the employer can take the credit.
More information on WOTC.
Subsidized private sector employment is employment in a private for-profit enterprise or a private not-for-profit enterprise which is directly supplemented by federal or state funds. A subsidy may be provided in one or more of the forms listed below:
- Work supplementation. A work supplementation subsidy diverts a participant's temporary cash assistance under the program to the employer. The employer must pay the participant wages that equal or exceed the applicable federal minimum wage. Work supplementation may not exceed 6 months. At the end of the supplementation period, the employer is expected to retain the participant as a regular employee without receiving a subsidy. A work supplementation agreement may not be continued with any employer who exhibits a pattern of failing to provide participants with continued employment after the period of work supplementation ends.
- On-the-job training. On-the-job training is full-time, paid employment in which the employer or an educational institution, in cooperation with the employer, provides training needed for the participant to perform the skills required for the position. The employer or the educational institution on behalf of the employer is paid a subsidy to offset the cost of the training provided to the participant. Upon satisfactory completion of the training, the employer is expected to retain the participant as a regular employee without receiving a subsidy.
- Incentive payments. Regional Workforce Boards may have local incentive programs that provide payments to employers for hiring hard-to-place participants. Incentive payments may also include payments to encourage employers to provide health care insurance benefits to current or former program participants.
Amount of incentive payments may vary depending on the length of time receiving cash assistance, lack of employment experience, lack of education, lack of job skills, and other appropriate factors.
Incentive payments may be made for the initial placement and different milestones in the retention of a Welfare Transition participant, e.g., an initial payment is made to the employer upon the employment of a participant, and the majority of the incentive payment is made after the employer retains the participant as a full-time employee for at least 12 months.
- Tax credits. An employer who employs a program participant may qualify for enterprise zone property tax credits under s. 220.182, the tax refund program for qualified target industry businesses under s. 288.106, or other federal or state tax benefits. The Regional Workforce Board shall provide information and assistance, as appropriate, to use such credits to accomplish program goals.
- Training bonus. An employer who hires a participant in the Welfare Transition program and pays the participant a wage that precludes the participant's eligibility for temporary cash assistance may receive $250 for each full month of employment for a period that may not exceed 3 months. Employment is defined as 35 hours per week at a wage of at least minimum wage.
For more information on the subsidized employment programs offered by the Regional Workforce Board (RWB) in your area go to the list of RWBs.
Go to the bottom of page on left side and double click on the list of RWBs. Contact the RWB located in your area.