Corporate and Continuing Education

Michigan New Jobs Training Program

Well-educated and highly-trained employees are critical to compete in today’s increasingly competitive global market. Jackson College works with the Michigan New Jobs Training Program (MNJTP) to offer employers a competitive edge and trained workforce. Currently, CCE manages over 4 million in MNJTP contracts, providing training for over 300 new positions.

Employer Benefits

• Reduce the cost of staff expansion
• Training for new employees
• Customized training programs
• Increase productivity and employee satisfaction
• Improve quality, profitability and customer satisfaction

MNJTP funds can pay for:

• Highly specialized customized training
• Courses at public or private training institutions
• Online courses
• Skill assessment, testing and certification
• Training equipment, materials, and supplies
• Development of customized courses and materials
• Administrative expenses

To begin the process, eligible employers should e-mail Corporate and Continuing Education .

• What is the purpose of the Michigan New Jobs Training Program (MNJTP)?

  Under MCL 389.161 – 389.166, employers can obtain training for new employees hired for new jobs under the Michigan New Jobs Training Program. Designed as an economic development tool, the MNJTP authorizes community colleges to work with employers that are creating new jobs and/or expanding operations in Michigan to receive diverted income tax withholding for newly hired workers for the purpose of funding a variety of training and employee development needs for those new positions.

• How is the training paid for?

  With this program, the debt associated with training is repaid to the college by diverting the new employee’s withholding taxes. In other words, the training of new employees is funded by dollars that would have otherwise been paid to the state. No new additional money is spent to cover the costs of training, offering employers virtually cost-free training of new employees.

• How does this program work?
  1. Employers should contact Jackson College to explore the possibilities available to them and determine eligibility.
  2. Preliminary agreements called “Letter of Intent” will be established to “set the clock” and lock in the date from which new employees can be counted for the project and training expenses may be reimbursed. These preliminary agreements can be cancelled if the college or the employer decides not to proceed. This non-binding agreement puts you in the queue, as the system is based on a first come, first serve basis.
  3. Jackson College will work with the employer to identify their training needs and to calculate the amount of funding available from the MNJTP.
  4. Once the funding is available, Jackson College will establish a contract with the employer. Jackson College will work with the employer to set up a pay-as-you-go reimbursement model.
  5. The employer will begin diverting the new employee’s withholding taxes away from the State, sending them to Jackson College.
  6. Jackson College will then divert the State withholding taxes back to the employer as training is completed.
• Who is considered an eligible employer?

  If you are engaged in business and have employees in the state of Michigan, you may be eligible to take advantage of the Michigan New Jobs Training Program. Employers in Michigan may enter into an agreement under the program with Jackson College if they are creating new jobs in this state that:

  • Are full-time, in a new, existing or expanding business of the employer;
  • Are not jobs of recalled workers, replacement jobs, or any other job that existed in the employer’s business within the one-year period preceding the date of an agreement;
  • Are new jobs that pay at least 175 percent of the minimum wage; and
  • Are new jobs that result in a net increase in employment in this state for the employer.
• What type of training services and program costs can be funded using the MNJTP?

  The MNJTP funding pays for:

  • Adult basic education and job-related instruction;
  • Developmental, readiness, and remedial education;
  • Vocational and skill-assessment services and testing;
  • Training facilities, equipment, materials, and supplies;
  • Subcontracted services with public universities and colleges in this state, private colleges or universities, or any federal, state, or local departments or agencies; and
  • Contracted or professional services.
• How is the loan amount determined?

  A: Below is a sample calculation for training agreements based on a 4.35 % state income tax for a 3-year period.

  Company	New employees to be trained	Hourly wage of new employees	Annual wage of new employees	Aggregate Annual Incremental Income Tax Capture of new hires*	Max. amount that could be borrowed
  Company A	50	$15	$31,200	$67,860	$203,580
  Company B	25	$25	$52,000	$56,550	$169,650
  Company C	10	$20	$41,600	$18,096	$54,288

  * The maximum amount that could be borrowed for training is determined by calculating the annual incremental income tax capture and the length of the agreement.