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Example of Support for New Jobs Training Programs
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Home > About the State of Iowa > Example of Support for New Jobs Training Programs
About the State of Iowa
An Illustration of Assistance for New Job Training
Premise
100 new employees with an individual hourly labor rate of $15.00
Job Training Assistance
Total funding available   $463,000
(A part of the withholding tax generated from new employment is used as the revenue source.)
Illustration of Expenses to Support Job Training
On-the-job training-wages and benefits during trainning period $218,000
Salary for lectures of a company for quality improvement training $50,000
Travel expenses for newly hired employees to get to the training site $100,000
Salary for college lecturers for security training $45,000
Trainning program computer software and materials   $50,000
Expected Deduction of New Employment Tax
$136,800
Companies that use the new job training programs and increase their employment by at least 10% are qualified for this tax deduction. This deduction is applied to the corporate income tax in Iowa.
Expected deduction of new employment tax is calculated based on the premise of $1,368 per job deducted in 2008 and one hundred new jobs.
Total Amount of Expected Assistance for New Jobs Training and Tax Deduction
$599,800
Fifteen community colleges in Iowa respectively manage/operate the Iowa New Jobs Training Program. Funds that can be used for training sometimes differ among community colleges. However, when the starting salary of new employees is equivalent to the average wage of the county or the average wage of the region, whichever is lower, a company can use twice as much as the amount of tax withheld to support the related training. Eligibility hinges on the one-time assessment of the starting salary conducted by a community college.