It’s a catch-22: you have enough work to hire a new employee, but you don’t yet have the cash-flow to pay them. From wage subsidies to financial incentives, there are programs out there to help!
Wage subsidies and other financial incentives can help you reduce your wage costs as you build your business. As a general rule, wage subsidies encourage employers to hire from specific groups including students, recent graduates, minorities, and people with disabilities.
The Canada Business Network Wage Subsidies search identifies current programs across Canada. You can look for federal programs or narrow your search by province and industry.
Note: Many programs have application deadlines that occur long before the financing period – for example, Canada Summer Jobs generally has an application deadline in January/February for a financing period that begins in June – so it pays to plan ahead!
Organizations that support minority groups often have funding available to encourage local hiring. Talk to your CFIB Business Counsellor if you are interested in learning more about these programs.
What if I hire an apprentice?
The Apprenticeship Job Creation Tax Credit (AJCTC) is a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to an apprentice up to a maximum of $2,000 per year, per apprentice. The credit relates to employment after May 1, 2006, so speak with your accountant if you’ve had an apprentice in the past decade; you may still qualify for the credit.