Apprentices bring value to both your workforce and your bottom-line
If your business employs apprentices and people in vocational trades, you may be eligible to apply for several grant and tax incentive programs. Employing apprentices has many benefits. In addition to being a part of this valued tradition, sponsoring is a great way to recruit and retain talented, enthusiastic people who will be trained to meet a very specific set of work standards. Apprentices bring back from their classroom training useful tools and technology to apply to your business plus you may be eligible for BC training and federal job-creation tax credits
A selection of apprenticeship-related incentives include the:
- Training tax credit for employers for Red Seal Programs: A refundable income tax credit for employing students enrolled in apprenticeship programs administered through the Industry Training Authority. Employers are eligible to apply for 10% of wages up to a maximum of $2,000 per year for each apprentice, for the first 24 months of registration. For more information visit CRA‘s website.
- BC Basic Tax Credit for Non-Red Seal Programs: Employers who hire apprentices registered in non-Red Seal programs are eligible to claim 20% of wages up to a maximum of $4,000 per year for each apprentice, for the first 24 months of registration
- BC Completion Tax Credit: Employers who hire apprentices are eligible to claim tax credits when those apprentices complete levels three and higher of the technical training or work based training hours or receiving a certificate (depending on the program) for their trade.
- Enhanced Tax Credit for Employers: Employers of apprentices who are First Nations or who have disabilities may also be eligible for additional tax credits:
- The Industry Trades Authority has an apprenticeship matching program as well as a comprehensive Employer Guidebook to help you start out.
- Wage Subsidy Work Experience Program: Eligible employers may benefit from a short-term wage subsidy to assist with the initial work- based training investment. Contact your local WorkBC Centre or Aboriginal Skills and Employment Training Strategy (ASETS).
- Skilled Trades Employment Program (STEP): STEP programs are created to support those in under-represented populations, including Aboriginal people, immigrants, women, youth, and other eligible British Columbians facing barriers to entering the trades.
- Canada BC Job Grant (CJG): The Canada-B.C. Job Grant provides direct financial support to employers who wish to purchase training for their current or future employees.
- An employer is required to contribute at least one third of the training costs, with the remaining two thirds, up to $10,000 per participant, coming from the CJG The employer must have a job for the participant at the end of training. Eligible training costs include: tuition fees; mandatory student fees; textbooks, software and other required materials; and examination fees.
Here’s a great video on what your responsibilities are, as an employer of an apprentice: