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In November of 2017, the Ontario provincial government changed the way companies can benefit from hiring and training apprentices. Before this announcement, companies were required to fill out schedule 552 in their tax filings. Now, any companies who register apprentices after November 14th, 2017 are eligible for the Graduated Apprenticeship Grant for Employers (GAGE). Apprentices registered in an eligible apprenticeship program on or before November 14, 2017, may still be eligible to receive the Apprenticeship Training Tax Credit.
The GAGE is designed to help businesses with the costs of training an apprentice. There are more than 100 eligible trades covered under the GAGE (click here to see a full list) and eligible businesses can receive up to $16,700, with a potential additional $2,500 if your apprentice is from an underrepresented group (women, Indigenous peoples, Francophones, people with disabilities, newcomers or racialized people).
Once an employer selects an apprentice, registers them with the local Ministry of Advanced Education and Skills Development apprenticeship office, and a Registered Training Agreement (RTA) is signed, the employer is automatically enrolled in the GAGE program. Employers then receive grants as the apprentice completes various levels of training.
If you have questions about the elimination of the Ontario Apprenticeship Tax Credit, the new Graduated Apprenticeship Grant for Employers, and how they may impact your company or your tax filing position reach out to Bateman MacKay for proactive tax and business advice.