Hiring an apprentice is an excellent human resource strategy. It helps reduce the challenges of skill shortages as tradespersons retire, and ensures a regular supply of trained workers.
It also gives your business a chance to train your workers early on so that they are prepared to move their way up through your company. Not only that, it’s been proven to reduce turnover by developing a culture of learning, progression and loyalty.
But did you know that it can also be a financial benefit for your business as well?
The government of Canada offers a number of incentives to help offset the costs of apprenticeships and make the strategy even more attractive for both the employer and apprentice.
Apprenticeship Job Creation Tax Credit For Employers
This non-refundable tax credit is equal to 10% of eligible salaries and wages paid to apprentices. This tax credit is available for wages and salaries starting May 1, 2006.
Using this tax credit, you can claim up to $2,000.
Achievement Incentive For Employers
In Ontario, employers receive up to $4,000 when apprentices meet training milestones. This includes $1,000 for each level of in-class training the apprentice finishes. This is collectible for up to three levels.
Employers also receive an extra $1,000 once the apprentice finishes the highest level of their trade and receives certification. This program was effective April 1, 2020.
Apprenticeship Incentive Grant
Once an apprentice finishes their first or second year/level, they can apply for a cash grant.This grant is $1,000 per year/level up to $2,000.
Apprenticeship Incentive Grant For Women
Registered female apprentices that have finished their first or second year/level receive a grant of $3,000 per year/level up to $6,000. Women must finish the year/level after April 1, 2018.
Apprenticeship Completion Grant
Similar to the previous grants, when apprentices finish their apprenticeship and become a journeyperson, they can claim an additional grant. This grant is equal to $2,000.
Tradespersons And Apprentice Mechanic Tool Deduction
Apprentice mechanics may be eligible for a tax deduction on the eligible cost of tools. These tools must be needed to earn income as a tradesperson. The deduction would be equal to the cost of eligible tools including taxes paid.
To learn more about apprenticeship incentives for you and your apprentices or for help applying, contact us today.
