Matching Requirements

1. Employers participating in IWT are required to provide matching support (direct financial support or third party in-kind) for the costs of providing the training to incumbent workers.

2. All matching contributions must clearly relate to incumbent worker training and must meet the requirements described in 29 CFR 200.306, Cost Sharing or Matching.

3. The non-federal share match contributed by an employer may include the amount of the wages paid by the employer(s) to an incumbent worker while the incumbent worker is attending a training program and may include other in-kind contributions.

4. The total cost of the entire project is the basis for calculating the required employer match.

5. Grantees should not add the employer match to the cost of training when entering project plans.

6. Employers must provide a minimum of ten percent (10%) in matching contributions. There is no maximum limit to the amount of matching contributions an employer must provide.

7. The type of match, either in cash or in-kind, is fairly evaluated and follows the specified non-federal share (match) requirements below:

   1. Ten percent (10%) of the cost, for employers with not more than fifty (50) employees;

   2. Twenty-five percent (25%) of the cost, for employers with more than fifty (50) employees, but not more than one hundred (100) employees; or

   3. Fifty percent (50%) of the cost, for employers with more than one hundred (100) employees.

8. The employer match must be tracked by the Local Workforce Innovation Area (LWIA) and reported in the Department’s accounting system.

Allowable Costs - Costs that are reasonable and necessary for the conduct of the training are allowable.

1. Listed below are extraordinary costs (i.e., beyond normal operating costs) that may be reimbursed through the grant or used as the matching contribution when incurred after the local area and business execute the IWT Employer Agreement outlined in the IWT Employer Agreement section of this policy.

   1. Training development;

   2. Instructors (fees or wages that are an extraordinary cost incurred by the work site, e.g., a) contractual fees charged by a trainer; b) the company’s corporate office charges to the work site for training costs creating an extraordinary cost for the work site; or c) wages for time company production supervisors based at the work site are taken out of production to conduct the training. Wages for dedicated in-house training staff are typically not eligible for reimbursement nor count toward the required match.);

   3. Tuition;

   4. Training materials and supplies;

   5. Fees for technical or professional certifications and/or licensures;

   6. Other fees required to complete training;

   7. Travel for trainers and trainees beyond normal commute;

   8. Training facility costs (off-site);

   9. Training facility costs (on-site if it results in an extraordinary cost to the company, e.g., costs to shut down a line/production to conduct the training may be counted toward the required match);

   10. Cost for use of firm’s equipment during training (on-site only, if it results in an extraordinary cost to the company, e.g., shut down a line/production to conduct the training may be counted toward the required match); or

   11. Wages of trainees while in training (may be counted toward the required match).

2. Trainee wages while in training may be used to meet the employer’s match requirement, but are not reimbursable costs to the WIOA grant; fringe benefits are neither reimbursable nor applicable to the employer’s match.

3. Although not prohibited, costs associated with Supportive Services are discouraged since incumbent workers are employed, the need for supportive services underwritten with WIOA funds is expected to be minimal.