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Subsidies for small businesses hiring students in Canada

Are you thinking about hiring a new staff member but resources are a bit stretched? A student could be your answer. As a small business owner, there are many government subsidies and grants that you may apply for to assist in paying the employment costs of current or recently graduated students. Here are five you should consider if you’re considering hiring a student or new grad.

Summer Students

The Canada Summer Jobs subsidy is open to any small business (50 employees or less) across the country, and can cover up to 50 percent of the salary of a full-time student that you employ over the summer. Requirements for this grant vary by province, and the monetary value is based on the minimum wage of your province. Applications open in the first quarter of each year for the upcoming summer.

Recent Graduates

The Youth Employment Program is part of the NRC Industrial Research Assistance Program (IRAP).  This program helps provide financial assistance to small and medium sized businesses (fewer than 500 employees) that hire a post-secondary graduate between the ages of 15 and 30 to work in an IT-related field. To qualify, your business must be incorporated and for-profit, and the internship/employment must be between six and 12 months.

Students/Graduates with Disabilities in Ontario

The Abilities Connect Fund assists small and medium-sized businesses in Ontario to hire a current student or recent graduate with a disability. The wage subsidy can be as high as $20,000, and also includes a possible $3,000 for training and assistive devices.

To qualify for this program, your business must meet several requirements, such as having $2 million in business insurance coverage, having been in business for at least two years, and providing a reference. If your company fits all the criteria listed on the Abilities Connect Fund’s website, it could be a great subsidy for your business.

ICT Students/Graduates

The Career Connect ICT Wage Subsidy is an incentive for companies to hire recent Information and Communications Technology (ICT) post-secondary graduates. The grant provides up to $14,000 in assistance, the position must include a minimum work time of three months. Also, the graduate must be between 15 and 30 years old, and the company must pay at least half of the employee’s wages. This assistance program is intended to get ICT graduates valuable work experience in what is typically a difficult industry for entry-level positions.

Co-op Students in Ontario

Financial incentive for hiring co-op students in Ontario comes in the form of the Co-operative Education Tax Credit, which may be as high as $3,000 for each placement. As long as the student is enrolled in a co-op program at an Ontario post-secondary institution, and the work placement is between 10 and 16 weeks, your business could qualify for this valuable tax credit.

http://www.fin.gov.on.ca/en/credit/cetc/index.html ​

Finding the money to hire new staff may challenge busy Canadian small business owners struggling to grow a business. With these subsidies, you can save money on wages for a portion of your workforce, identify potential future full-time permanent employees, and  also provide valuable work experience to post-secondary students.

To discuss further topics to help run your small business, partner with the good people at Meridian today.  We offer a full suite of competitive small business banking products and services.