As an employer in Ontario, you can claim the following provincial tax credits for your apprentices or co-op students.
Note: The Ontario apprenticeship training tax credit has been discontinued. You can only claim expenses for apprenticeship programs that started before November 15th, 2017.
Apprenticeship training tax credit
If your unincorporated business hires and trains apprentices in skilled trades, you can claim the apprenticeship training tax credit to help you pay for the cost to train them. Apprenticeships that started on or after April 24, 2015 qualify for the tax credit for the first 36 months of their program. Apprenticeships that started before that date are eligible to claim the credit for the first 48 months.
The credit amount is based on the salary and wages you paid to the apprentice. Businesses can claim 25 per cent of eligible expenses, up to a maximum of $5,000 per year for each apprenticeship ($15,000 over the first 36-month period).
Co-operative education tax credit
If you hired students enrolled in a co-op program at an Ontario university or college, you can claim a tax credit to help you pay for their salaries. With the co-operative education tax credit, you can claim up to $3,000 for each work placement. Most work placements are between 10 weeks to 4 months.
Make sure your student’s school provides you with a letter of certification for their placement.
Where do I claim this?
Follow these steps in H&R Block’s 2017 tax software:
Before you begin, make sure you told us that you lived in Ontario on December 31, 2017.
- Under the PREPARE tab, click the IN THIS SECTION icon.
- Under Income from self-employment, a business you own, or a profession (lawyer, accountant, etc.) and related expenses (vehicle, advertising, travel, etc.), click the Add This button.
- Select the province or territory of your self-employment.
- Click the EMPLOYMENT icon. You'll find yourself here:
- Under the CREDITS AND REBATES heading, select the checkbox labelled Ontario tax credits for self-employed individuals, then click Continue.
- When you arrive at the page for the Ontario tax credits for self-employed individuals, enter your information into the tax software.