Koroll & Company Blog

What are the Incentives For Hiring an Apprentice in Ontario?

[fa icon="calendar"] Jun 15, 2021 3:45:00 PM / by Allen Koroll

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

Book A Free Consultation

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.

About Koroll & Company

At Koroll & Company we grow our firm through satisfied clients referring us as a trusted accounting firm to their friends, family members and associates. The only way we know how to achieve this is strive to exceed your expectations and provide you with exceptional service. We have 20+ years servicing Newmarket, ON and the surrounding areas, and look forward to servicing you next. So give us a call and speak to a friendly staff member from Koroll & Company today!

Topics: Education, Corporate

Allen Koroll

Written by Allen Koroll