Hiring an apprentice can connect you with an employee that has knowledge of cutting-edge technologies and concepts to help your business stay competitive. Government knows apprenticeship is important for our economy and provides incentives to offset the costs of apprenticeship. Here are opportunities for the employer and individual apprentices:
Apprenticeship Job Creation Tax Credit (AJCTC): If you hire an eligible apprentice, you can claim this non-refundable tax credit equal to 10 per cent of the eligible salaries and wages payable to the apprentice in respect to employment after May 1, 2006. The maximum credit is $2,000 per year for each apprentice.
- Apprenticeship Incentive Grant for Women (AIG-W): Female apprentices that have completed their first or second year/level can apply for a taxable cash grant of $3,000 per year/level up to a maximum amount of $6,000.
- Apprenticeship Incentive Grant (AIG): Apprentices that have finished their first or second year/level can apply for a taxable cash grant of $1,000 per year/level up to a maximum of $2,000.
- Apprenticeship Completion Grant (ACG): Apprentices that have become a certified journeyperson can apply for a taxable cash grant of $2,000.
- Tradespersons and Apprentice Mechanic Tool Deductions: The cost of eligible tools bought to earn employment income as a tradesperson and as an eligible apprentice mechanic may be tax deductible, including any GST/HST and provincial sales tax paid.
- Saskatchewan Employees' Tool Tax Credit: A credit to recognize the costs of purchasing, replacing and upgrading eligible tools by qualifying employees as a condition of their employment. The tax credit consists of two components: a one-time trade entry amount and an annual maintenance amount.
- Graduate Retention Program (GRP): Eligible graduates who live in Saskatchewan and file a Saskatchewan income tax refund can receive a refundable income tax credit to rebate up to $20,000 of tuition fees.
Always remember that CFIB's Business Resources team is here to help!