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Information for Employers
DHS Employment and Retention Services Unit
A free service for Rhode Island’s businesses, the Department of Human Services (DHS) RIte Works Employment & Retention Services Unit can help local businesses, no matter how large or small, find qualified, dependable employees and discover ways to cut costs and save money.
RIte Works can provide local companies with:
To learn more about how DHS and RIte Works helps local employers meet their needs call (401) 462-5369. Other important resources and contacts include:
- Department of Labor and Training (DLT) (401) 828-8055
Employer Service Unit- RI Economic Development Corporation (401) 222-2601
- DHS Family Independence Program Infoline (401) 462-5300
TTY/Hearing Impaired (401) 462-3363
(for child care subsidy and health care eligibility)- Options for Working Parents (401) 272-7510
(for child care referrals) 1-800-244-8700
Hiring and Financial Incentives
In today’s competitive marketplace, businesses everywhere are facing the same challenges -- finding ways to cut costs, increase productivity, and hire qualified job applicants in an ever-shrinking labor force. The DHS, however, through its RIte Works program, has developed ways to help local businesses meet some of their challenges.
The RIte Works program makes hiring DHS Family Independence Progam (FIP) participants an excellent business decision by providing valuable wage subsidies, tax credits and other incentives to local service- or manufacturing-based companies.
A company may qualify for valuable wage reimbursements of up to $2.50 per hour for every hour eligible new FIP employees work. The reimbursement per employee cannot exceed a maximum of $2,600.
Employers who participate in RIte Works may also qualify for federal and state tax credits including:
Federal Work Opportunity Tax Credit (WOTC)
Federal Welfare to Work Training Credit (WWTC)
For more information on any of the above tax credits call the Department of Labor and Training (DLT) Employer Service Unit at (401) 828-8055 or visit their web site at Department of Labor and Training.
Federal Work Opportunity Tax Credit (WOTC)
A credit available to businesses hiring certain employees, including former FIP/TANF (Temporary Assistance for Needy Families) beneficiaries, and individuals aged 18-24 who recently received food stamps. WOTC is used to reduce federal tax liability for private, for-profit employers. Maximum credit available is $2,400 per eligible worker.
(Note: Employers may claim both the WOTC and the WWTC for the same employee, but not in the same taxable year. Both the WOTC and the WWTC have been extended through June 30, 1999. Further extensions may occur, but are not guaranteed.)
Federal Welfare to Work Training Credit (WWTC)
This credit equals 35% of "qualified wages" for the first year and 50% of "qualified wages" for the second year for a total credit of up to $8,500 over two years. Employees must work a minimum of 400 hours or 180 days. Qualified wages cannot exceed $10,000/year.
(Note: Employers may claim both the WOTC and the WWTC for the same employee, but not in the same taxable year. Both the WOTC and the WWTC have been extended through June 30, 1999. Further extensions may occur, but are not guaranteed.)
Businesses may take a credit of 50% of expenses up to $5,000/employee over a three-year period against their state business tax for the retraining or upgrading of their existing or new workforce. Qualified employees must earn a maximum of $7.75/hour and work at least 30 hours/week at the time of training and for 18 months following training.
RI employers are allowed to take a state tax credit of 40% (up to $2,400) of an eligible new employee’s wages. New employees must have been previously unemployed for at least 26 weeks, and must have been a resident of the state or a welfare recipient for at least one year prior to date of hire. Employers must file with the RI Department of Labor and Training (DLT) within 30 days of hiring qualified employees.
Employers may qualify for a tax credit for providing vocational or basic education equal to 25% of the cost incurred up to a maximum of $300/employee and $5000/year. Literacy programs, GED preparation, ESL classes, vocational training and citizenship studies for immigrants are all covered. Employees must remain employed for at least 13 consecutive weeks and work a minimum of 455 hours for eligibility.
This credit is available to business providing on-site child care or purchasing off-site care for employees’ children. The credit equals 30% of employer expenditures for child care including on-site facility operation costs, and off-site service purchasing costs up to a maximum total credit of $30,000.
Other key aspects of the RIte Works program include:
- On the job training programs including formal training programs in specific areas of concentration that can be customized to meet an employer’s labor needs.
- Work preparedness programs under FIP that emphasize dependability and positive work habits and ultimately provide employers with a pool of pre-screened, employment-ready applicants.
- A large pool of applicants who have a variety of skills and are available to fill service or manufacturing employment needs immediately.
Grants are available that assist Rhode Island businesses to remain competitive, become more productive and profitable by training and upgrading the skills of their existing workforce. Many employers who take advantage of these grants find that their financial contribution to meeting the training needs of their workforce can be consisted for one of the corresponding Rhode Island tax credits.
Excellence through Training Grant
Export Assistance Training Grants
Excellence through Training Grant
Since 1993, nearly 700 Rhode Island businesses have been awarded more than $11 million in matching funds to aid these businesses to sharpen their competitive edge through employee training programs. The Rhode Island Human Resource Investment Council manages this annual competitive grant. For more information, call (401) 462-8860.
This grant helps employers with 100 or fewer employees by working with the employer to provide a personalized training grant that helps to retrain workers to new technologies or systems. Companies located in Providence or Cranston should call (401) 861-0800. Businesses located in any other Rhode Island community should call (401) 222-2090.
This program, managed by the RI Economic Development Corporation (RIEDC), provides matching grants to train new employees to both in-state and out-of-state companies looking to increase employment in Rhode Island. For more information, contact RIEDC at (401) 222-2601.
Through funding available from the Human Resource Investment Council, Rhode Island businesses are able to take advantage of matching grants to aid their existing workforce to learn English, or improve their math and/or reading skills, or to obtain a GED. It is recognized that literacy is a primary tool for anyone in today’s workforce. For more information, call the Workforce Literacy Collaborative at (401)861-0815.
Export Assistance Training Grants
Through grants available through the Rhode Island Economic Development Corporation (RIEDC), Rhode Island employers are able to receive individualized information regarding export development to aid them in developing a successful export process. For more information contact RIEDC at (401) 222-0815.
Education, Training and Employment Retention Services
DHS/RIte Works Employment and Retention Services Unit
The RIte Works Employment and Retention Services Unit is a new unit organized by DHS specifically to meet the hiring needs of Rhode Island employers and the job placement needs of the department’s Family Independence Program (FIP) participants. At no charge to RI businesses, the unit works to assist employers with the often time-consuming task of recruiting, screening and interviewing work-ready candidates. The unit can also arrange partnerships with employers to help their new employees with education, training, and a host of other services aimed at increasing the employee’s work preparedness.
To date, the RIte Works Employment and Retention Services Unit has met with much success in running both large-scale and small-sized recruitment efforts to help meet the workforce needs of local service- and manufacturing-based businesses.
For more information about the RIte Works Employment and Retention Services Unit or for a referral call (401) 462-5369.
For more information, please refer to the Family Independence Program Red Book
RI Department of Labor and Training
The DHS has worked closely with the Department of Labor and Training (DLT) on several training, education and hiring initiatives in an effort to provide streamlined services to Rhode Island employers.
For more information about DLT training, education and hiring programs call (401) 828-8055.
DHS/Family Independence Program Training
Working with a variety of contracted services, the DHS is able to provide its program participants with educational, vocational and other job skill preparedness services, in an effort to make this new segment of the labor market qualified for work.
DHS employee training can include:
- Training and support to complete the General Education Diploma (GED).
- Coursework to enhance math, language, reading, writing and computer skills.
- English-as-a-Second Language classes.
- Soft skills training which addresses the issues of employer expectations such as hygiene, workplace attire, punctuality, dependability, and attendance.
- Resume writing, interviewing and networking workshops.
- Technical skills training for skilled manufacturing and/or service sector jobs.
- Child care training and certification programs for those interested in pursuing employment in the child care industry.
Employment Support Services for Employees
Employees just entering or re-entering the workforce, many of whom are of lower-to-moderate income status, often need support to help them acquire and maintain employment. Recognizing this fact, the DHS provides support in a variety of critical areas ranging from child care assistance to health insurance to help ease a person’s transition into employment and to remove obstacles to gainful employment. These support services have also been designed to give entry-level employees the opportunity to gain work experience and move into higher paying jobs gradually without sacrificing their health or the quality of care they are able to provide their children.
Finding and being able to pay for quality, stable child care may present significant barriers to a person’s ability to acquire and maintain employment. Having access to quality health care also plays a role in helping a person maintain his/her employment. In the end, providing low-to-moderate income, working families with this type of assistance translates into a more dependable and productive workforce for local employers.
Working families, whether they are receiving benefits under the DHS Family Independence Program (FIP) or not, may qualify for subsidies to fully or partially pay for quality child care for their children. Eligibility for subsidies is based on income level, family size and RI residency. A sliding scale co-payment ranging from as little $0.00 per child per week to a maximum of $50.00 per child per week may apply to some families, however, depending on their income.
(Note: co-payment structure is subject to change.)
To receive subsidies for child care, such care must be provided by licensed centers or licensed home-based providers. In some situations, an unlicensed relative or family friend can be approved for a subsidy payment.
As of May, 2002, guidelines allow for an income of up to 225% of the Federal Poverty Level, or up to $33,795 for a family of three.
For more information about the DHS Child Care Program and/or subsidy eligibility information, call the DHS Infoline at 401-462-5300 & TTY/Hearing Impaired 401-462-3363.
Adults who are receiving assistance through the Family Independence Program (FIP) and are starting a new job may still be eligible to receive health coverage through the state’s managed health insurance program, RIte Care or may qualify for RIte Share, the state’s premium assistance program. For more information, see the Rhode Island Medical Assistance Program: RIte Care and RIte Share webpage.
The Earned Income Credit (EIC) was created to reduce the tax burden on low-to-moderate income working families, to supplement wages to these employees, and to make working a more financially beneficial alternative to public assistance.
There are two possible methods/options available to receive EIC:
- Advanced EIC Program - allows an eligible employee to receive an increased take-home pay throughout the year without additional work hours. The employee who chooses this method would receive only a portion of the total amount of his/her earned income credit in his/her paycheck; the remaining balance of the earned income credit would then be applied to any federal tax liability owed (such as an outstanding student loan, etc.), OR this balance could in fact increase a refund amount when the employee files his/her Federal Income Tax Return (1040 or 1040A) Form at the end of the year. To apply for the advanced EIC payment, the employee must submit a W-5 Form, the EIC Advanced Payment Certificate to their employer annually.
- Annual EIC Benefit - an employee simply needs to fill out a Schedule EIC; compute the amount of the EIC credit to which he/she is entitled; and attach the Schedule EIC to his/her Federal Income Tax Return (1040 or 1040A) Form.
Although not an actual DHS program, DHS works to make all beneficiaries aware of the annual EIC option and/or the advanced EIC option. Employers honor the requests of their employees who opt to have part of the earned income credit advanced to them in their paycheck. Employers are urged to work with DHS to inform employees of these programs and to have the necessary forms on hand.
The value of the EIC can be substantial, especially for employees who have children residing with them. The 1998 tax year credit ranged from as little as $2.00 to as high as $3,756.00, depending on earnings and whether the employee was a single adult, or if the household included one or two (or more) children.
Example: A worker earning $10,000 who has no children living with him/her would have been entitled to $4.00 from the EIC. However, a worker earning $10,000 with one child living in the home could have been entitled to $2,271.00,and a worker with two or more children could have been entitled to $3,756.00.
For more information, please call the DHS RIte Works Employment and Retention Service Unit at (401) 462-5369.
Quality Child Care Choices: Benefiting the Employee and Employer
A national leader in the area of child care, Rhode Island provides subsidies to more working families than most states, allowing families to earn more money yet remain eligible for assistance. Rhode Island families are eligible for child care assistance through DHS based solely on their income; families do not have to be receiving benefits from the DHS Family Independence (FIP) Program to qualify.
Through our Child Care Program, DHS is working to help local businesses realize the importance of quality, accessible child care to an employee’s piece of mind and understand that employees with good, dependable child care are more stable and more productive employees.
The DHS contracts with Options for Working Parents, a program of the Greater Providence Chamber of Commerce and funded by the DHS, to provide free consultation and valuable expertise to Rhode Island businesses interested in exploring whether or not a child care benefit is appropriate for their workplace. A wide range of choices is available to businesses including consortium child care arrangements, tax credits and flexible spending accounts.
Letting employees know that there is a resource and referral service available to them if they are in need of child care services is another great way for local businesses to help their employees. Options for Working Parents can also help employees find appropriate child care in their area if none is available at their place of employment.
For more information about employer-sponsored child care choices and other ways local businesses can help their employees find child care services, call Options for Working Parents at (401) 272-7510 &
1-800-244-8700.
