Wage Subsidy

Wage Subsidy

 

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:

 

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 and trade
  • Be able to provide full-time work on the project for 12 months

Other conditions apply; refer to the following link for more information.

Read online:
Support for youth internships

 

Summer Jobs Service

You may receive a $2 an hour wage subsidy as an incentive to hire students. To be eligible, you should be able to offer work that will last up to 16 weeks, beginning April 1 and ending by September 30.

Read online:
Summer Jobs Service

 

 

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

 

 

Ontario Youth Apprenticeship Program

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 Hotline:
1-800-387-5656
Ontario Youth Apprenticeship Program (OYAP)

 

 

The Targeted Initiative for Older Workers

You may be able to get support to hire a worker between the ages of 55 and 64. The program is available in communities with high unemployment, that depend on a single employer or industry, and have a population of less than 250,000.

Read online:
Targeted Initiative for Older Workers

 

Youth Employment Strategy Programs (YES)

The Youth Employment Strategy is made up of several 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.

YES 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
  • Aboriginal urban youth centres
  • Businesses working in both official languages

Read online:
Young Canada Works

 

Summer Work Experience Program

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, public sector, and private businesses with fewer than 50 employees.

Read online:
Summer Work Experience Program

  

Career Focus

If you are interested in taking advantage of the skills and energy of a recent graduate, you may benefit from the Career Focus Program. The program is designed to connect employers with youth job-seekers who want to gain advanced employment skills and transition into the workforce.

Read online:
Career Focus

 

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

You can also find books, magazines and other relevant print material at business service organizations in your community. To locate a Canada Business Ontario (CBO) community partner, contact us at 1-888-576-4444.

 

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