“Then the Apprenticeship Job Creation Tax Credit could help you,” says Chartered Accountant Scott Conner, Senior Tax Manager, BDO Dunwoody LLP in Huntsville.
Conner explains that eligible employers will receive a non-refundable tax credit equal to 10 per cent of the salaries and wages paid to qualifying apprentices, to a maximum credit of $2,000 per year, per apprentice. Special rules ensure that, when an apprentice works for two or more related employers in a year, the combined credit does not exceed $2,000 and the $2,000 credit can only be allocated to one employer.
“Qualifying apprentices are those who work for eligible employers in qualifying trades during the first two years of their provincially registered apprenticeship contracts. Qualifying trades are prescribed, and include the Red Seal trades like tool and die makers, welders and plumbers. Regulations prescribing other trades may be forthcoming,” advises Conner.
The Apprenticeship Job Creation Tax Credit is available to eligible employers in respect of salaries and wages paid to qualifying apprentices on or after May 2, 2006. Employers can carry unused credits back three years and forward 20 years to reduce federal income taxes payable in those years.
Brought to you by the Institute of Chartered Accountants of Ontario.
The Institute of Chartered Accountants of Ontario is the qualifying and regulatory body of Ontario’s 33,000 Chartered Accountants and 5,000 CA students. Since 1879, the Institute has protected the public interest through the CA profession’s high standards of qualification and the enforcement of its rules of professional conduct. The Institute works in partnership with the other provincial Institutes of Chartered Accountants and the Canadian Institute of Chartered Accountants to provide national standards and programs that are used as examples around the world. </em>
