Benefit Your Business
Tax Credit Program Success Stories
Success Story: Care Training Center
& Care Management Group
When Alan Russo, vice president
of Care Training Center and Care Management Group in New Haven, was
starting his new company, his accountant mentioned the Federal
government's Welfare-to-Work (WtW) and Work Opportunity Tax Credit (WOTC)
programs. Because the company trains and places home health aides and
nursing assistants, it often hires entry-level home healthcare workers,
including individuals moving off welfare or from economically
impoverished areas. The programs were of interest to Mr. Russo since
they would offer tax credits for hiring and training new employees from
these target groups.
Several qualified employees were
referred to the company from the Regional Workforce Development Board of Greater
New Haven. Upon hiring them, Care Training Center and Care Management Group
filled out the appropriate forms for the Connecticut Department of Labor.
Initially, Mr. Russo had some difficulty with the Federal and State forms, but
he says that the State DOL staff were extremely helpful during the application
process, particularly in determining employee eligibility and which of the two
programs to use. He now describes the process as fairly simple and intends to
apply again this year as he hires new employees that fit the target groups
covered by the tax credit programs. He believes that his company will benefit
considerably this year through the WtW and WOTC tax credits.
But Mr. Russo points out that it's not
just the company that benefits from the programs. One of Mr. Russo's current
employees was on Temporary Family Assistance when the Regional Workforce
Development Board referred her to his company. Having broken out of the welfare
system, she is now a full-time employee with full benefits. Last year she was
recognized by the Better Business Bureau with the Superior Service Award.
Care
Training Center and Care Management Group are more than satisfied that what
benefits their bottomline also benefits their employees. "When you see programs
come together to create such a success story like hers, as a businessperson,
you'd be foolish not to try to make every employee a success," Mr. Russo
concludes.
Top of Page
Success Story: Microboard Processing,
Inc.
The Connecticut Department of
Labor's tax credit programs for employers were already in place when
Linda Janaskie became the Human Resources manager at Microboard
Processing, Inc, in Seymour, CT. The company is an electronic assembly
house that manufactures printed circuit boards and electronic
assemblies.
Ms. Janaskie says that the process is
fairly simple since the pre-screening notice and certification form, Form 8850,
is automatically attached to each new employee's application. That initial step
is what gets the ball rolling for qualifying for the tax credits that benefit
the company.
"It's a really good tax benefit for the
company," Ms. Janaskie says, noting that Microboard Processing has taken
advantage of the tax credit programs since 1997. The company has employed
approximately 10 qualified individuals since then and has seen the difference
these programs make in their bottomline. Although some paperwork is
involved-mostly documentation from the employees regarding their eligibility-Ms.
Janaskie explains that the qualifying process only takes 5 to 10 minutes per
employee.
The company's use of the Welfare-to-Work
(WtW) tax credit has increased considerably since 1999 when a community
organization used a State grant to help people that qualify for the WtW program
find employment with Microboard Processing. Six participants started training at
a facility in Derby, then came to Microboard where they received additional
training that totaled 300 hours. They were then hired by Microboard. Two of
these original trained employees are still there. Given that the industry often
sees considerable turnover in production line jobs, Ms. Janaskie feels that
Microboard Processing has had good results from the program.
"The main thing is
that it really does help people. The tax credits benefit the company, but the
employee also benefits because the program rewards employers for hiring and
training them," notes Ms. Janaskie.
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