Incentives To Employing Apprentices


Incentive Description Benefit for Employer
Apprenticeship Training Tax Credit ATTC (ON Tax) (Click for more info) The apprenticeship training tax credit is a refundable tax credit. It is available to employers who hire and train apprentices in certain skilled trades during the first 36 months of an apprenticeship program that commenced on or after April 24, 2015.  The tax credit is based on salaries and wages paid to an apprentice. Qualifying businesses can claim 25 per cent of eligible expenditures (30 per cent for small businesses) made during the first 36 months of an apprenticeship program. Max  $5,000 per year, per apprentice.  Max $15,000 total per apprentice.
How to Register for this Benefit: Corporations may claim the tax credit on Schedule 552 and file it with their T2 corporation income tax return.  Employers operating unincorporated businesses may claim the tax credit on form ON479, Ontario Credits, included in their personal income tax return. (Click Here for more Information and Forms)
Apprenticeship Job Creation Tax Credit AJCTC (Federal Tax) (Click for more info) The Apprenticeship Job Creation Tax Credit (AJCTC) is a non-refundable tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices in respect of employment afterMay 1, 2006. The maximum credit an employer can claim is $2,000 per year for each eligible apprentice. If your business hires an eligible apprentice, you qualify to claim the credit. (Click Here for more Information and Forms) $2000.00 per year per apprentice
How to Register for this Benefit: 1) If you are an employer, you will be able to claim the AJCTC on your Individual Income Tax Return, on line 412 – Investment tax credit, by filing Form T2038(IND), Investment Tax Credit (Individuals), or Form T2SCH31 Investment Tax Credit – (Corporations)
2) Any unused credit may be carried back 3 years and carried forward 20 years.
3) When two or more related employers employ the same apprentice, special rules apply to ensure that the $2,000 limit is allocated to only one employer.
Apprenticeship Completion Employer Bonus (ON Gov) (Click for more info) A taxable $1000 maximum cash grant to Employers for each apprentice they hire and train that has completed his or her apprenticeship and received a Certificate of Apprenticeship and, where applicable, a Certificate of Qualification. (Click Here for more Information) $1000.00 per apprentice
How to Register for this Benefit: Eligible employers will receive a letter and application from the Ministry of Training, Colleges and Universities. Employers will be identified by the registration document or training agreement with individual apprentices. Any application received after the 180-day time limit will not be eligible for the support.  Employers must ensure that their apprentices indicate the correct employer information when completing MTCU paperwork.
Employer Signing Bonus (ON Gov) (Click for more info) The $2,000 Employment Signing Bonus encourages employers in the trades to register new apprentices in sectors where there is a high demand for skilled workers. This initiative will assist employers to hire and register apprentices who have left school and require upgrading to meet the registration standards for apprenticeship training. The apprentice must be an apprenticeship scholarship candidate. (Click Here for more Information) $2000.00 per apprentice
How to Register for this Benefit: The Employer Signing Bonus will be delivered in two equal instalments over six months.
To be eligible for the first instalment, employers must:
1) Meet all the specific apprenticeship requirements to provide training in the trade, and
2) Hire and register an apprenticeship scholarship candidate as an apprentice.
To receive the second instalment, employers must:
Continue to employ the apprentice and provide on-the-job training for at least six months from the date that the apprentice was registered.  **This payment is automatic to employers who have hired an apprentice who is registered with the MTCU as a scholarship candidate** Employers must ensure that their apprentices indicate the correct employer information when completing MTCU paperwork.
Youth Job ConnectionYouth Job Link(Click for more Info) Employers can apply for hiring incentive funding to hire youth from 15 to 29 years old.  Employers can apply by contacting an Employment Ontario location offering the program and negotiate incentives. (Click Here for more Information) Incentives negotiated directly with Employment Ontario location
How to Register for this Benefit: Employers can apply by contacting an Employment Ontario location offering the programs and negotiate incentives.