Job Retention Training Program Purpose
Provides assistance in reducing the cost associated with retraining an existing workforce for the purpose of retaining jobs in the state of Missouri through training services:
Authorization
Sections 178.760 to 178.764 RSMo (2004)
Regulations: 4 CSR 195-3.020
Eligible Areas
An eligible project may be located anywhere within the state of
Missouri.
Eligible Applicants
Businesses with a sound credit rating currently located in Missouri that have retained at that site the level of employment for at least one year, and a minimum of 100 employees for two consecutive calendar years preceding the year in which the application for the program was made. In addition, the business must make a capital investment of at least one million dollars to acquire long-term assets.
Eligibility Criteria
Businesses applying must be:
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engaged in interstate or intrastate commerce for the purpose of manufacturing, processing or assembling products;
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conducting research and development; or providing services in interstate commerce.
In addition to being determined at-risk, businesses must also meet oneof the following criteria:
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Have made a substantial investment in new technology; or
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Be located in a border county of the state and represent a potentia risk of relocation from the state; or
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Be determined to represent a substantial risk of relocation from the state by the Department of Economic Development.
Retail businesses do not qualify for this program. Other eligibility
criteria may apply, such as types of jobs, type of industry and wage
rates.
Program Benefits/Eligible Uses
The community colleges, located in twelve districts in Missouri, in cooperation with the Missouri Department of Economic Development through the Division of Workforce Development, administer the program. Funds for training and project costs are generated by using tax credits from the employer’s regular withholding taxes that are paid for the employees in the retained jobs. The tax withholding is equal to 2.5% of gross wages for the first 100 jobs, and 1.5% for the remaining jobs in the project. The tax withholding credits for the project are claimed for an average of 4 to 5 years to pay for project costs.
Training assistance can include skill assessments, instructor costs, curriculum development, travel and a variety of other training-related services. On-the-job training expenses are restricted to no more than 50% of a project’s training costs. In addition, total expenses for equipment, supplies and travel cannot exceed 25% of a project’s training costs. Training may be provided by the company, a local educational agency or a training vendor.
Funding Limits
Funding for this program is contingent upon the availability of funds. There is a limit on the total amount of outstanding project costs for all Job Retention Training Program projects. In addition, the amount of funds available each year is further controlled by the applicable appropriation.
Application/Approval Procedure
The appropriate community college will notify the Division of Workforce Development in writing of its intent to submit a Job Retention Training Program Application with an eligible employer. On behalf of the company, the community college will then submit an application for the Job Retention Training Program. Upon approval by the Division, the community college may enter into a formal contract agreement with the company. The community college board of trustees must approve all final project agreements.
Community college contacts may be obtained through the Division of Workforce Development’s Industry Training Unit at (800) 877-8698 or e-mail at: wfdcusto@ded.mo.gov
Reporting Requirements
The community college will assist the company with documenting and
submitting all reporting requirements for this program.
Special Program Requirements
If applicable, union consultation is required.
This program is subject to “clawback” legislation. If any jobs for which training assistance has been received are moved out of Missouri or eliminated within five years of the date the project is approved, the company may be responsible for repayment. The Director of the Department of Economic Development has the authority and discretion to determine any exemptions from the repayment requirement.
Any proposed amount is an estimate based on the assumptions provided by the company. Any variation in the actual salaries or number of jobs retained could affect the proposed amount and possibly invalidate the proposal. This summary is for guidance only and does not state complete program requirements.
Contact
Missouri Department of Economic Development
Division of Workforce Development
Business and Industry Services
421 East Dunklin
P.O. Box 1087
Jefferson City, MO 65102
Phone: 573-526-8254 Fax: 573-522-9496
Toll Free Phone : 800-877-8698
E-mail: wfdcusto@ded.mo.gov
Web: http://ded.mo.gov/WFD.aspx
Business and Community Services
301 W. High Street, Rooms 720, 770 Jefferson City, Missouri 65102
Tel: 800-523-1434 Fax: 573-751-7384 Email: missouridevelopment@ded.mo.gov |