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UC-700 (12/99)

ARIZONA DEPARTMENT OF ECONOMIC SECURITY UNEMPLOYMENT INSURANCE

EMPLOYER NEWSLETTER – October 2000

ARIZONA JOB TRAINING PROGRAM

In the New Economy, people are the ultimate resource. Arizona’s Job Training Program helps address the lack of job-

specific skills by partnering with the private sector to provide funding for customized job training.

The Arizona Job Training Program provides reimbursement grants for short-term, customized job training creating net

new jobs in Arizona. This empowers Arizona’s businesses by providing them the opportunity to design and create training

plans to meet their unique industry challenges. Applicants must meet various eligibility criteria, but the main measurable

factor is the wage level.

The program is funded through a new 0.1% Job Training Tax (see related article), which coincides with a 0.1% reduction

in the Unemployment Insurance required income rate (rate necessary to maintain the solvency of Arizona's UI Trust

Fund). The required income rate and other factors determine the level of annual adjustment to the statutory tax rates

assigned to eligible experience rated employers.

Grant recipients may be reimbursed for job-specific training costs proportionate to the committed number of net new

positions created. Businesses must maintain or exceed their current level of training expenditures and must meet or

exceed the average annual wage for the county in which they are located. All grant recipients must contribute at least

25% of the total training cost. There is a set-aside of program funds of 25% for small businesses with fewer than 100

employees and 25% for businesses located in rural communities.

Beginning in 2001, grants will also be available to train existing workers throughout the state. The existing worker

program may fund up to 50% of the estimated training costs for qualified businesses with the companies matching at least

50%.

For additional information or to download a copy of the application, visit the Job Training Program pages on the Arizona

Department of Commerce web site at, , or call (602) 280-1327.

ARIZONA JOB TRAINING TAX

On April 25, 2000, Governor Hull signed into law, H.B. 2262, the Arizona Job Training and Employer Tax bill. This

legislation levies a new job training tax of 0.10% of taxable wages beginning January 1, 2001.

Reporting and paying job training taxes will mirror the unemployment insurance tax process. Experienced rated employers

will begin paying job training taxes at the end of the first quarter of 2001. Form UC-018, Unemployment Tax and Wage

Report, will include a new item titled "Job Training Tax" and instructions on how to calculate and pay the job training tax.

Several other UI tax forms will be modified to include the new job training tax notification and calculation. The revised

forms as well as specifications for those who wish to create their own Unemployment Tax and Wage Report form will be

available after February 1, 2001.

Look for future articles and announcements about the Arizona Job Training Tax in the December 2000 edition of the

Employer Newsletter.

Form Uc-700 - Employer Newsletter - Arizona Department Of Economic Security Unemployment Insurance - October 2000