Wage Subsidies and Tax Credits for Employers

https://sbs-spe.feddevontario.canada.ca/wage-subsidies-and-tax-credits-employers
Table of contents
Introduction
Wage subsidies
Tax credits
Other resources
Introduction
Hiring employees is often an essential part of operating a business. Whether you need a full-time employee or an extra person to help you
during a busy season, this guide will give you an overview of programs that are available in Ontario.
There are wage subsidies and tax credits for different types of hiring, including:
 Internships
 Apprenticeships
 Youth employment
 Summer employment
For information on general business financing in Ontario, see our Financing a business guide.
You should also learn about the rules and regulations for hiring employees. See our Employment regulations guide: hiring for more information.
Wage subsidies
A wage subsidy is a type of funding that helps cover part of an employee’s wage for a specific amount of time. Some of the wage subsidies that
are available in Ontario include:
Canada-Ontario Job Grant
If you are an employer, you could get a grant to cover 1/2 to all of the costs of training for your employees. The maximum you may receive is
$10,000 per trainee.
Examples of eligible costs:
 Tuition and examination fees
 Textbooks, software and other required materials
You need to:
 Contribute between 1/6 and 1/2 of the training costs
 Use a third-party trainer
Other conditions apply.
Read online:
Canada-Ontario Job Grant
FedNor youth internships
If you are interested in hiring a youth intern in Northern Ontario, you may be eligible for funding to help you cover up to $31,500 in salary
costs.
To qualify you must:
 Operate a small business in Northern Ontario
 Hire an unemployed or underemployed youth (aged 30 and under)
 Provide a work plan and mentoring/supervision
 Have a project related to innovation, the digital economy or trade
 Be able to provide full-time work on the project for 12 months
Other conditions apply.
Read online:
Youth internships
Housing Internship Initiative for First Nations and Inuit Youth (HIIFNIY)
If you offer housing-related work experience and on-the-job training to First Nations or Inuit youth between the ages of 15-30, you may be
eligible for financial support through the HIIFNIY program.
Read online:
HIIFNIY
Student Work Placement Program
You may be eligible for a wage subsidy from $5,000 to $7,000 to hire post-secondary students. Student work placement activities can include,
but are not limited to:
 mentorship programs
 co-op placements
 internships
Visit an Employer Delivery Partner’s website for more details.
Read online:
Find wage subsidies to hire post-secondary students
Ontario Youth Apprenticeship Program (OYAP)
If you can provide supervision and a training structure in the skilled trades, you could be matched with a pre-screened apprentice.
Contact the Employment Ontario Contact Centre:
1-800-387-5656
Ontario Youth Apprenticeship Program (OYAP)
Youth Employment and Skills Strategy (YESS)
The Youth Employment and Skills Strategy is made up of programs designed to make it easier for employers to hire a young person or recent
graduate. Each program offers different support to either help you find or to offset the costs of recruiting or training a new student or summer
employee.
Search database
Youth Employment and Skills Strategy – Funding programs
YESS includes the following programs:
Young Canada Works
If you want to hire a young graduate for the summer, you may be able to benefit from Young Canada Works (YCW). YCW matches new
secondary and post-secondary graduates seeking work with prospective employers.
 Heritage organizations
 Businesses working in both official languages
Read online:
Young Canada Works
Canada Summer Jobs
Get help finding a summer employee and learn about wage subsidies that are available when you hire a student between the ages of 15 and
30. Eligible businesses include not-for-profit organizations, the public sector and private businesses with fewer than 50 employees.
Read online:
Canada Summer Jobs
Tax credits
A tax credit generally allows you to claim back an amount or percentage of the money you spent on certain activities when you file your income
tax return. Tax credits for employers include:
Apprenticeship job creation tax credit
If you hire an apprentice to work in a Red Seal Trade, you may qualify for a tax credit to cover 10% of their salary and wages up to a maximum
of $2,000 per year.
Read online:
Apprenticeship job creation tax credit
Co-operative education tax credit
You may be eligible for a tax credit of up to $3,000 when you hire a student enrolled in a co-operative education program. Other requirements
include:
 Paying the student for their work
 Supervising and evaluating the student’s job performance
 Providing a co-op placement for a period of at least 10 consecutive weeks or providing an internship program placement for 8 to 16
consecutive months
Read online:
Co-operative education tax credit
Other resources
Employment service
Contact Employment Ontario to find out about programs to help you attract and recruit new employees. You may also be eligible for funding to
help cover the costs of training your new employees.
Read online:
Employment services
Employment and Social Development Canada grants and contributions programs
Employment and Social Development Canada offer grants and contributions programs to help support jobs and training.
Read online:
Funding programs for jobs, training, and social development projects
 
You can also find books, magazines and other relevant print material at business service organizations in your community. For more
information or to locate a local business centre, contact us at 1-888-576-4444.