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.)
This is a simplified
budget to expose users to the different levels of W-2 participation and the
difficulty of low income living. It assumes you are a custodial parent not currently
receiving child support.
W-2 Transition
Level
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.
Food:
At this income
level, and no other assets, you should qualify for food stamps:*
W/1 child = $37/month
2 children = $138/month
3 children = $229/month
4 children = $309/month
5 children = $410/month
Enter into the budget line item the amount you would spend on food beyond the
amount you receive in food stamps. Remember that food stamps will not cover
alcohol or food purchases from restaurants.
*Food stamp allocations are based upon a
number of factors. This amount is based upon: no child support is received,
no medical expenses occurred, rent is $500/month not including utilities, and
no other income is received. Also, the $300 monthly subsidy to W-2 Trial Job
employer is subtracted from the employee's total earned income and counted as
unearned income per Food Stamp policy.
Source: Wisc Department
of Workforce Development.
Child Care:
The W-2 program
offers subsidies for child care. Depending on number of children and type of
care, there is a variable co- payment.
Here, at an income level of $628 a month would be your co- payment for "licensed"
child care:
1 child = $20/month
2 children = $44/month
3 children = $68/month
4 children = $68/month
5+ children = $72/month
And your co-payment for "certified" child care:
1 child = $8/month
2 children = $20/month
3 children = $32/month
4 children = $40/month
5+ children = $52/month
For more information go to DWD's
Office of Child Care.
Medical:
At
this income level, with children and without assets, you should qualify for
Medicaid which could provide coverage with no monthly copayment.
Medicaid is a federal program not administered through W-2. Wisconsin's plan
to develop its own health plan for W-2 participants has been turned down by
the federal government.
The state has introduced BadgerCare, a health plan for working families who
don't qualify for Medicaid but are still below 200% of the poverty level.
For more information, Wisc
Dept. of Health and Family Services
return
to top
Community Service
Job Level
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.
Food:
At this income
level, and no other assets, you should qualify for food stamps:*
W/1 child = $154/month
2 children = $255/month
3 children = $346/month
4 children = $426/month
5 children = $527/month
Enter into the budget line item the amount you would spend on food beyond the
amount you receive in food stamps. Remember that food stamps will not cover
alcohol or food purchases from restaurants.
*Food stamp allocations are based upon a
number of factors. This amount is based upon: no child support is received,
no medical expenses occurred, rent is $500/month not including utilities, and
no other income is received.
Source: Wisc Department of Workforce Development.
Child Care:
The W-2 program
offers subsidies for child care. Depending on number of children and type of
care, there is a variable co- payment.
Here, at an income level of $673 a month would be your co- payment for "licensed"
child care:
1 child = $20/month
2 children = $28/month
3 children = $44/month
4 children = $68/month
5+ children = $72/month
And your co-payment for "certified" child care:
1 child = $12/month
2 children = $20/month
3 children = $32/month
4 children = $40/month
5+ children = $52/month
For more information go to DWD's
Office of Child Care.
Medical:
At
this income level, with children and without assets, you should qualify for
Medicaid which could provide coverage with no monthly copayment.
Medicaid is a federal program not administered through W-2. Wisconsin's plan
to develop its own health plan for W-2 participants has been turned down by
the federal government.
The state has introduced BadgerCare, a health plan for working families who
don't qualify for Medicaid but are still below 200% of the poverty level.
For more information, Wisc
Dept. of Health and Family Services
return
to top
Trial Job Level
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.
Food:
At this income
level, and no other assets, you should qualify for food stamps:*
W/1 child = $37/month
2 children = $138/month
3 children = $229/month
4 children = $309/month
5 children = $410/month
Enter into the budget line item the amount you would spend on food beyond the
amount you receive in food stamps. Remember that food stamps will not cover
alcohol or food purchases from restaurants.
*Food stamp allocations are based upon a
number of factors. This amount is based upon: no child support is received,
no medical expenses occurred, rent is $500/month not including utilities, and
no other income is received. Also, the $300 monthly subsidy to W-2 Trial Job
employer is subtracted from the employee's total earned income and counted as
unearned income per Food Stamp policy.
Source: Wisc Department
of Workforce Development.
Child Care:
The W-2 program
offers subsidies for child care. Depending on number of children and type of
care, there is a variable co- payment.
Here, at an income level of $1222 a month would be your co- payment for "licensed"
child care:
1 child = $108/month
2 children = $92/month
3 children = $68/month
4 children = $68/month
5+ children = $72/month
And your co-payment for "certified" child care:
1 child = $76/month
2 children = $64/month
3 children = $48/month
4 children = $40/month
5+ children = $42/month
For more information go to DWD's
Office of Child Care
Medical:
At
this income level, with children and without assets, you should qualify for
Medicaid which could provide coverage with no monthly copayment.
Medicaid is a federal program not administered through W-2. Wisconsin's plan
to develop its own health plan for W-2 participants has been turned down by
the federal government.
The state has introduced BadgerCare, a health plan for working families who
don't qualify for Medicaid but are still below 200% of the poverty level.
For more information, Wisc
Dept. of Health and Family Services
return
to top