Wage Subsidies to Leverage When Hiring Employees for Your Small Business

by Thom Tracy

2 min read

As a small business owner, many wage subsidies are available to you through the Government of Canada. Whether you are looking to hire or train interns, part-time or full-time employees, there is likely a subsidy your company can use.

Apprenticeship Job Creation Tax Credit

As a nonrefundable tax credit, the Apprenticeship Job Creation Tax Credit is equal to 10% of eligible wages and salaries payable to qualified apprentices employed after May 1, 2006. To be considered an eligible apprentice, a person must be working in a prescribed or Red Seal trade and must be less than two years into his or her apprenticeship. Additionally, the apprentice’s record of employment and contract must be registered with the territorial, provincial, or federal government under a program created to licence or certify individuals in that trade. The maximum amount of money an employer can claim for each qualified apprentice is $2,000 per year.

Canada Summer Jobs Program

The Canada Summer Jobs program supports all small businesses that employ full-time students who are between the ages of 15 and 30, and also intend on returning to their studies during the following school year. While employers may be within the private, public, or not-for-profit sector, private employers must have 50 or less full-time employees on the payroll to qualify for this program. If an employee works more than 30 hours a week, he or she is considered full time. Not-for-profit businesses can receive funding for the total amount of the territorial or provincial hourly minimum wage. Private and public sector companies may only receive a maximum of 50% of their perspective territorial or provincial hourly minimum wage.

Science Horizons Youth Internship Program

For nearly two decades, the Science Horizons Youth Program has created over 2,000 internship programs across Canada. Supporting green jobs for youth, Science Horizons provides wage subsidies of up to $15,000 for qualified companies to hire interns in the clean technology and environmental sectors. Qualified interns must be recent university graduates with degrees in engineering, science, technology, or math. Part of the Canadian Government’s Youth Employment Strategy, Science Horizons aids young citizens in acquiring the abilities, skills, and work experience needed to successfully find and maintain gainful employment. Science Horizons’ wage subsidies are provided through the Clean Tech and Environmental Youth Corps Internship Programs.

Canada Job Grant

The Canada Job Grant supports employers and employees with funding toward the cost of training provided by eligible third parties, such as trade unions, private trainers, or community and career colleges. The total sum of training costs is shared between employers and the Government of Canada. The Canadian government can reimburse up to two-thirds of training costs, for a maximum of $10,000 per grant. Employers are mandated to pay the remaining one-third of the cost. To apply, refer to your individual territory’s or province’s specific guidelines.

Costs that are eligible for coverage include:

  • Tuition or fees charged by trainers
  • Examination fees
  • Software, textbooks, and other required materials
  • Mandatory student fees

References & Resources

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