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Understanding
Poverty
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W-2 Budget Simulation
Could
you make ends meet if you were in W-2? Compare what you spend in a month
with W-2 wages, and try to construct a budget that will leave you with
a little left over at the end of a month.
Select
one of the levels of the W-2 "employment ladder" to begin
the exercise. The goal of W-2 is to move participants to self-sufficiency
through a stepped process starting with a "Transition" program,
to a "Community Service Job", to a subsidized "Trial
Job", and eventual unsubsidized employment.
For more details on W-2 and the employment ladder check out the Department
of Workforce Development W-2 Fact Sheet.
(This simulation has been developed in conjunction with the UW-Extension,
Family Living Programs.)

| W-2
Transition |
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Transition
is for W-2 participants who have severe barriers to employment (chemical
addiction, for example). At this level there is a $628 monthly grant
for up to 28 hours a week of work training and up to 12 hours/week
of education programs. Participants may also qualify for food stamps,
Medicaid, and child care. |
Community Service Job |
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For
participants who need to gain basic work skills and learn proper
work habits before being able to find employment, community service
jobs are available. These jobs provide $673 for up to 30 hours a
week in job training and up to 12 hours weekly in educational activities.
Participants may also qualify for food stamps, Medicaid, and child
care. |
Trial Job |
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For
those who are ready for jobs, but have been unable to secure employment,
trial jobs are a possibility. The employer is subsidized for the
first months of the trial worker's employment to cover training
costs. Employers pay the worker at least minimum wage and participants
can also
qualify for food stamps, Medicaid, and child care.
A sample of W-2 Trial Job participants revealed an average wage
of $7.11/hour, or $1222 a month (based on 4.3 weeks in a month),
before any deductions. Employees may apply for the Earned Income
Credit when filing taxes. |
Understanding
Poverty
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