Hiring Incentives and Tax Credits in Ontario
Employers looking to hire employees and receive an incentive to do so should connect with the Centre for Career and Employment Services (CCES) to have access to all available funding opportunities. All services for employers offered through the CCES are free of charge.
Employment Ontario Incentives
The following incentives must be applied for through your nearest Employment Ontario office:
Orangeville Employment Ontario
Georgian College Centre for Career and Employment Service
30 Centre Street
519 942 9986
Youth Employment Fund
The Youth Employment Fund is offered through Employment Ontario and exists to provide youth with an entry point to long-term employment through job placements that offer the chance to learn work skills while still earning an income.
Funding is available for employers to hire youth between15 and 29 years of age who are unemployed, not participating in full time training/education, residents of Ontario and actively seeking employment through employment Ontario. Employees must be hired from the candidate pool currently registered with Employment Ontario in order to receive funding.
Employers can receive a hiring incentive to hire these candidates. Funding is decided on after considering the needs of the employer, employee and Employment Ontario. Employers can receive funding for four to six months.
To be eligible you should:
- be licensed to operate in Ontario
- be compliant with all regulations
- be covered by safety insurance
- provide job placements lasting 4-6 months
- be filling only new employment positions
Transferable job skills training is also available for employees through this program for suitable employees who require specific skills for the job you are hiring for such as First Aid training and computer skills. The training can occur before or during the job placement but cannot exceed eight weeks.
Summer Jobs Service
The Summer Jobs Service is a program funded in part by the Government of Canada and delivered through the CECS. This program provides up to a $2-per-hour hiring incentive for employers who hire a student during the summer.
Private, not-for-profit or broader public sector employers (including farms and community organizations) offering a summer job in Ontario to students age 15 to 30 who are returning to school in the fall. The incentive subsidizes an employer from April 1 to September 30 at the longest.
Employers must visit an Employment Ontario office to apply for this funding.
Job Placement Incentive
The Job Placement Incentive is offered through Employment Ontario and exists to provide adults aged 30 and above with entry or re-entry into the workplace through job placements that offer the opportunity to learn job skills and earn an income.
Employers must visit an Employment Ontario office to apply for this funding and hire candidates from the pool currently registered with the Centre for Career and Employment Services.
Employers can receive a hiring incentive to hire these candidates. Funding is decided on after considering the needs of the employer, employee and Employment Ontario. Employers can receive funding for four to six months and will be required to provide an invoice to the CCES of the hours worked by the employee over this time period.
Employer Signing Bonus (for apprenticeships)
Employers who hire and register an apprenticeship scholarship candidate in a sector with a high demand for skilled workers may qualify for a $2000 signing bonus. Employers must provide on the job training for at least six months from the date the apprentice was hired. The Employer Signing Bonus must be accessed through the CECS.
Small Business Hiring Incentives
Hiring Credit for Small Businesses
The hiring credit for small business gives small business owners relief from the employer’s share of employment insurance (EI) premiums paid in a year. It does this by crediting up to $1 000 to the payroll program account, based on the increase in an employer’s EI premiums paid in one year over those paid in the year before.
If you started your business in 2013 and received a new BN, you will receive the HCSB if you are eligible and a zero value will be used for the 2012 employer’s share of EI premiums when calculating the amount of credit you are eligible to receive.
Businesses are eligible for the SBHI if :
- they deducted premiums from the remuneration paid to employees, or paid the worker’s share of EI premiums
- they report income and deductions on a T4 slip and filed the information on the payroll program (RP) account
- the total of employer EI premiums paid for 2012 was less than $15 000
- the total employer EI premiums increased in 2013
Apprenticeship Tax Credits and Hiring Incentives
Apprenticeship Job Creation Tax Credit
Receive a tax credit equal to 10% of an apprentice’s salary (up to $2000) if:
- The apprentice is in the first two years of an apprenticeship program registered with the government in a trade listed under the Red Seal Trades (http://www.red-seal.ca/w.2lc.4m.2@-eng.jsp) and working towards getting a certificate or license in that trade
For information on how to claim the tax credit visit: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns409-485/412/jctc-eng.html
Unused credit can be carried back three years or forward 20 years.
Apprenticeship Training Tax Credit
Receive a tax credit for up to $10 000/year to hire and train an apprentice in skilled trades (max $40 000 over 48 months). The credit is based on the salaries and wages paid to an apprentice. Qualifying businesses can claim 35% of eligible expenses (45 per cent for small businesses) made during the first 48 months of the program.
The tax credit benefit is available to businesses that have permanent establishment in Ontario, pay Ontario income tax and incur eligible expenses in training apprentices in skilled trades. See the list of eligible skilled trades and more information about calculating the credit here: http://www.fin.gov.on.ca/publication/apprenticeship-training-tax-credit-details-en.pdf
Eligible expenditures include salaries and wages (including taxable benefits) and fees paid to an employment agency for services performed by an apprentice.
Canada Summer Jobs
Please visit the Canada Summer Jobs website in the Fall of 2014 for updated information on Summer 2015 hiring incentives.
The Canada Summer Jobs program allows employers to receive a wage subsidy of up to 50 per cent of an eligible full-time student aged 15 to 30 years old.
To qualify for the program:
- Students should be between 15 and 30 years old
- Employers should have no more than 50 full time employees
- Employers need to meet the priorities set by your region. (http://www.servicecanada.gc.ca/eng/epb/yi/yep/programs/csj/2014/local/ontario/index.shtml)
- The job must last between 6 and 16 weeks and be a minimum of 30 and a maximum of 40 hours per week
The priorities for Dufferin-Caledon are:
- Not-for-profit organizations that provide programs and services for disadvantaged community groups
- Seniors care
- Associations of local businesses
- Community centres
- Small businesses
- Specialty engineering
- Environmental protection
- Development of volunteerism
- Corporate partnership for community building
- Local townships and municipalities
The value of the subsidy is based on minimum wage in your region.
Skills Link is a program that provides funding for employers and organizations to offer eligible activities to youth facing barriers to employment. The primary focus of this program is to find employment for these youth.
To participate in Skills Link, youth must be:
- between the ages of 15 and 30 (inclusive) at the time of intake/selection;
- out of school;
- Canadian citizens, permanent residents, or persons who have been granted refugee status in Canada;
- legally entitled to work according to the relevant provincial/territorial legislation and regulations;
- not in receipt of Employment Insurance (EI) benefits.
Participants must not be in receipt of EI. Priority will be given to non EI-eligible youth (i.e., not entitled to Part 1 or Part II benefits). EI recipients wishing to participate in a Skills Link project should consult an EI agent and voluntarily withdraw from EI.
- in need of assistance to overcome employment barriers.
Skills Link participants are youth at greater risk of not making a successful transition to the workplace and establishing themselves within the labour market.
Skills Link project activities can be supported individually or in combination, and should form part of the participant’s employment action plan. The following is a list of activities eligible for funding under the Skills Link program:
- planning and project development activities where stakeholders would collectively review research and evaluation findings, identify gaps and client needs, and determine priorities and goals to achieve a coordinated delivery of employment programs and services;
- service activities, which include outreach, client assessment, case management (including diagnostic assessment and referral to other community resources and services), career development information and job search and job retention assistance;
- activities designed to enable youth to gain work experience (including entrepreneurial activities) which would include mentorship, coaching and support in advancing an action plan;
- activities that help youth facing barriers to employment obtain skills, ranging from basic to advanced skills, through direct assistance to individuals;
- activities that enable groups of youth to gain employability skills; and
- Activities that enable groups of youth to acquire or enhance transferable skills, develop personal qualities such as self-esteem, self-reliance, leadership, communication and teamwork, while contributing to their communities.
Co-operative Education Tax Credit
Hire a student enrolled in a post-secondary co-operative education program for a minimum of ten weeks to a maximum of four months.
Eligible businesses may apply for a refund of up to $3 000 per placement.
For information on claiming the credit visit: http://www.fin.gov.on.ca/en/credit/cetc/index.html
Research and Development Credits
Connect Canada Internships
The Connect Canada Internship provides up to $5000 to hire a graduate student or post doctoral fellow for 4-6 months for an advanced research and development project. Your business must be Canadian and offer an internship that is challenging, relevant and scientifically rigorous. The project should involve an advanced R&D project jointly developed with the academic supervisor. The employer must be willing to fund half of the $10 000 stipend.
To register to be an industry partner visit https://www.connectcanadainternships.ca/industry-leaders/register.htm.
Ontario Exporters Fund
Applicants who have between one and twenty million dollars in sales and have export sales between 10-50% annually may be eligible to receive 50% of the eligible costs of hiring an experienced Export Manager. The maximum amount for this activity is $80 000. Applicants must be already established in Ontario and be a registered company for two years. Companies should be in:
- Advanced manufacturing
- Building products and construction
- Clean technology (renewable energy, smart grid and environmental technologies)
- Exportable professional services (architecture, engineering, urban planning)
- ICT including Digital Media
- Life Sciences
For full eligibility requirements see http://www.ontarioexporters.ca/who-is-eligible/
Film, Digital Media and Television Tax Credit
Ontario Film and Television Tax Credit
If you are an Ontario film or television producer, you can apply for a refundable tax credit up to 35% of labour costs. To qualify you must:
- Operate a Canadian-controlled corporation
- Have a permanent establishment in Ontario
- File an Ontario corporate tax return
- Have been an Ontario resident for tax purpose at the end of both of the two calendar years before the start of principal photography.
More information available here: http://www.omdc.on.ca/film_and_tv/tax_credits/OFTTC.htm
Ontario Interactive Digital Media Tax Credit
If you are involved in digital media production you may qualify for a tax credit of up to 40% of your eligible labour expenditures if:
- Operate a Canadian corporation
- Have a permanent establishment in Ontario
- File a yearly Ontario tax return
- Earn less than $20 million in annual gross revenue
- Hold total assets of $10 million or less
- Create a digital media production in Ontario
For more information please visit: http://www.omdc.on.ca/interactive/Tax_Credits/OIDMTC.htm