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Frequently Asked Questions for Employers
1. What are the employer’s responsibilities for participating in the My LiLA Now program?
Participation in the My LiLA Now program is simple since the processes and tools are online. The employer’s responsibilities are as follows:
A) Enroll the organization online and approve employees for participation.
B) Set up informal employee outreach meetings. A My LiLA Now Representative will conduct them and provide the materials.
C) Match employee contributions and transfer funds to the My Lila Now Account held by the LiLA region's bank.
D) Distribute My LiLA Now restricted use debit cards to LiLA participants.
E) Congratulate LiLA participating employees on their achievements!
2. What kinds of classes or courses can my employees take and where can they take them?
Employees are allowed to take classes that advance their careers. The classes or education activities can be certifications, degrees, workshops, seminars, refresher courses and can be taken at a wide range of providers. The providers can be professional trades associations; industry recognized training providers, community colleges, universities, vocational schools, or professional training organizations.
3. How can I be sure that the classes my employees take will advance them in their career?
Employees work with an assigned career advisor to develop an Individualized Learning Plan (ILP). The employee will choose classes that advance their career goals. The classes or educational activity can be industry wide, or across industries, however the classes cannot be hobbies, sports, or games unless the course is required for a degree. The Career Advisor will verify the class is in line with their career goals.
4. Can I visit with the employee to discuss their future career? Will I know what they are taking?
It would be excellent to have a discussion with the employee to share with them the opportunities that are available with upgraded skills or further education. In addition the employer will have a listing of classes being taken by their employees.
5. Can employees use their LiLA funds for other expenses outside the requirements for courses they have chosen?
No, only required expenses associated with their courses are allowable expenses. Employers will give their LiLA participants a restricted use My LiLA Now debit card to pay for the required education expenses (books, tuition, supplies). The restricted debit card is encoded with specific merchant category codes which allow the LiLA participant to register for courses and pay for required supplies. In addition the LiLA participant will submit receipts to Phillips Resource Network for verification. In the event an un-allowed purchase is made, the LiLA participant will be required to reimburse the LiLA account.
6. Will employees be taxed for my contribution or the scholarship match (if applicable)? Will my contribution be considered income for the employees? How do I categorize my contribution so that it is not taxable?
LiLAs enjoy the same tax status as other educational benefits, such as tuition reimbursement; employees’ contributions are made after tax. Employers should consult their tax advisor regarding relevant provisions, such as Section 127 of the Internal Revenue Code. For further tax information see http://www.irs.gov/pub/irs-pdf/p970.pdf
The long-term policy goal of the LiLA initiative is to create tax incentives for employer and employee LiLA contributions.
7. What is the minimum amount per employee that an employer needs to contribute? Can I establish a higher or lower cap?
Minimum and maximum amounts are determined by each individual company program. For the Scholarship match, the minimum is $500.00 and there is no maximum. For the Employer-Employee match LiLA , the employer can establish the minimum and maximum requirements.
8. What are the eligibility requirements for an employee to participate in the My LiLA Now program?
The eligibility requirements are simple: full time status, continuous employment for six months, and have performance in good standing. Employers can include additional requirements.
9. What happens if an employee terminates employment before registering for a class?
If an employee terminates prior to taking a class, all funds are returned to the respective contributors. See Program Guidelines for more information regarding termination.
10. Since the My LiLA Now program is part of a larger national demonstration project, what is the timeline, and what happens when the demonstration period ends?
The My LiLA Now program is one of several initiatives of OneKC WIRED. The U.S. Department of Labor granted Kansas City a WIRED (Workforce Innovation in Regional Economic Development) Grant which funds workforce development initiatives through January 2010.
Legislation was introduced to Congress in January 2007 and currently resides in the finance committee. In addition, individual states are introducing LiLA legislation, and My LiLA Now in Kansas City is working with leaders at state and local levels to make LiLAs a standard offering in employee compensation packages in Kansas and Missouri. See the My LiLA Now “News” tab or www.cael.org for up to date LiLA legislation progress.
11. I already offer tuition reimbursement, how can I benefit from the LILA program?
The LiLA program is designed to enhance and support what is already in place or provide tuition assistance if an organization does not have an education reimbursement program. In addition, the LiLA program can be used as a “kick-start” to continue their education since the funds are provided upfront, and be a bridge to use a company’s tuition reimbursement plan. Tuition Reimbursement programs have an average uptake of 3% - 4% while LiLA utilization rate averages 10%.
The unique characteristics of LiLAs encourage and provide support to the employee to seek education and training and remove barriers that may prevent employees from continuing their education. LiLA Characteristics include:
- Funds provided upfront to pay for tuition and supplies, removing the #1 barrier of lack of funds to take a course.
- Broad use of funds including tuition, required supplies, books, equipment, even clothing. A LiLA can be used for any course which advances an employee’s career and is not limited to being job specific.
- LiLAs include career counseling to assist employees in navigating the education system and guidance in course selection. Career Advisors are also aware of additional resources to meet personal needs of the employee.
- LiLAs are a shared contribution between the employee and employer and in some instances a third party investor (scholarship). It is a co-investment for the employee for his or her future.
12. How will I know if my employee has passed a class? What grade is required?
Employees are required to submit grades or certificates of completion to their Career Advisor. Once the grades are received, the employer’s administrative page will be updated to reflect the passing, failure, or course completion. A grade of “C” is required to maintain eligibility. If an employee fails or does not complete their class, they will be required to reimburse the employer and scholarship funds if applicable.
13. Where can I find all the details regarding this program?
Please review the Program Guidelines found at www.MyLiLaNow.com on the sidebar tab, My LiLA Now. You will find all details, requirements, and process information to answer your questions. Please feel free to contact your My LiLA Now representative through this web site or by phone.