With 10% of Connecticut’s workforce projected to retire within the next decade, the state is clamoring to attract young workers.
But in an economy with a comparatively low unemployment rate and a looming recession, what are employers doing to get the attention of millennials?
The answer is non-wage benefits.
In an effort to incentivize employers to keep young people in the state, Connecticut now offers tax credits to employers that provide some non-wage benefits.
For instance, the 2019 General Assembly passed a bill allowing eligible employers to claim a tax credit equal to 50% of the payment made on the outstanding principal balance of an eligible employee's student loans as of January 1, 2022.
The maximum credit permitted per employee per income year is $2,625.
The legislation defines "qualified employees" as an individual who is a resident of Connecticut, has earned a bachelor's degree within the last 5 years, and is employed full-time in the state.
This definition targets recent graduates to retain them in the state, but also limits employers to claiming the tax credit for five years per employee.
CBIA supported similar legislation during the last session to encourage employers to offer a variety of non-wage benefits to help overall workforce development efforts.
In 2018, a CBIA survey found that only 3% of Connecticut businesses offer student loan reimbursement to employees.