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California Employment Training Panel (ETP)

California republic

What is it?

When businesses expand by hiring or make improvements by training their existing workforce, the costs can add up quickly.

The California Employment Training Panel (ETP), instituted in 1982, is designed to provide funding to help businesses offset these vocational training costs.

The program strives to ensure that California companies have skilled workers that can compete with out-of-state businesses or on a global scale as well.  It’s funded by a state tax levied on employers (the Employment Training Tax), so it provides a unique opportunity for organizations to fund their own success and the success of their communities.

How is the program administered?

The ETP program is managed by a panel of eight people:

  • Three appointed by the Governor
  • Two appointed by the Speaker of the Assembly
  • Two appointed by the Senate President Pro Tempore
  • The final panel member is either the Director of the Governor’s Office of Business and Economic Development or a person appointed by him/her

How do you qualify?

ETP funding is provided as a reimbursement of training costs to businesses meeting particular performance metrics.  These performance-based metrics include:

  • Proof of a certain number of training hours completed (as determined by the customized plan set forth by the ETP 8-member panel)
  • Proof of trainees having transitioned to applicable high-paying jobs for a particular duration at a particular wage

When the training in question is for unemployed workers, or workers in areas of high unemployment, the funding from ETP can potentially be a full reimbursement of the costs.

It should be noted that if the training is for incumbent employees then the employer is required to contribute a non-reimbursed portion of the cost.

Is it helping?

To date, the program has provided over $1 billion in reimbursement to employers for training expenses and has helped over 80,000 businesses (per CA.gov).

How to get started

Businesses looking to apply for ETP funding must first attend an orientation (available online, in person, or by phone) that outlines the requirements and application process.

In addition to the orientation, the ETP provides various resources to help businesses through the process of determining eligibility, organizing training programs and applying for funding when ready.

These resources include a flowchart to outline the process of developing a contract, a Contractor’s Guide and a planning guide, entitled Planning Your Training Program.

Businesses can contact their nearest regional office for additional information.

 
Learn More About ADP SmartCompliance® Tax Credits
 


The information provided in this blog post is for informational purposes only and not for the purpose of providing accounting, legal, or tax advice.  The information and services ADP provides should not be deemed a substitute for the advice of any such professional.  Such information is by nature subject to revision and may not be the most current information available.

 


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