Wage Thresholds
Effective July 1, 2005, wage thresholds for applicants applying for financial assistance from IDED's business financial assistance programs will be revised based upon the re-establishment of the "Grow Iowa Values Fund".
Quarterly Wage Calculation
Average wages will be calculated on a quarterly basis, rather than annually, using wage data submitted by Iowa Workforce Development during the most recent four quarters of available data. Calculating wages on a quarterly basis will enable IDED to utilize the most recent data available.
Wage thresholds will be divided into the following categories:
130% of average county wage
- CEBA requests of more than $500,000
- Value-Added Agricultural Products and Processes Financial Assistance Program (VAAPFAP)
- High Quality Job Creation Program (HQJC)
160% of average county wage
- High Quality Job Creation Program (HQJC)
The value of certain employee benefits may be included for purposes of calculating the starting wage for jobs pledged with Grow Iowa Values Fund dollars and the High Quality Job Creation Program (HQJC). These benefits include: medical and dental insurance plans, pension and profit sharing plans, child care services, life insurance coverage, vision insurance plans, and disability coverage.
90% of average county or regional wage, whichever is lower
100% of average county or regional wage, whichever is lower
- Economic Development Set-Aside Program (EDSA)
HF 2782 will become effective July 2006 and contains the following provision related to the Iowa Values Fund (IVF), the High Quality Job Creation (HQJC) Program, and the Wage-Benefit Tax Credit Program. Section 39. Section 151.4, subsection 2, paragraph a, Code Supplement 2005, is amended to read as follows: Medical and dental insurance plans. If an employer offers medical insurance under both single and family coverage plans, the employer shall be given credit for providing medical insurance under family coverage plans to all new employees.
IDED will amend the High Quality Job Creation (HQJC) Program and Iowa Values Fund (IVF) Administrative Rules as follows: Medical, dental, or vision insurance plans. The department shall use the business’s portion of the annual premium for family coverage in the wage calculation. If the business’s plan is self-insured, the department will look at the amount paid by the business for costs associated with the plan during the past three years and determine the average annual contribution per employee for that three-year period when determining the value of the medical, dental, or vision plan for the wage calculation.
Download the 2008 (2nd quarter) Wage Thresholds [MS Excel: 63k]. These rates cover the period from April 1, 2008, thru June 30, 2008.
Transition
To accommodate pending projects, any Project Review Form received at IDED prior to April 1, 2008, may utilize the 2008 1st quarter wage thresholds, providing full applications are received within six months.
If you have questions regarding the new wage thresholds or wish to discuss a proposed project, please contact our office at 515.242.4793 or 800.532.1215 or e-mail businessfinance@iowalifechanging.com.
|
