Training Grants to Get Your Business Off The Ground
Skilled labour can be surprisingly hard to come by. Finding and keeping quality employees is actually one of the greatest challenges for businesses across Canada. According to a survey conducted by Canadian Manufacturers and Exporters, more than 70 percent of respondents expressed the desire for additional funding that could be used to support employee training.

In the same survey, most respondents also said they would prefer direct funds to increase in-house training rather than efforts to facilitate skilled labour through lower payroll taxes or government-sponsored training programs. As a result, the Canadian federal government, as well as a number of provincial governments, has created several initiatives to incentivize more quality training for employees.

These initiatives differ in their individual focuses, but all are designed to improve employee morale and engagement, which will lead to higher levels of employee retention. Here are a few of the programs currently available for businesses in Canada.

Canada Job Grant

The Canadian federal government sponsors the Canada Job Grant Program. It is a six-year training grant available to companies across the nation. The program started in 2014 and will continue through 2020. Businesses are encouraged to apply for grants through province-specific variants of the program. Grants can cover as much as two-thirds of expected costs of third party training to improve employee’s job-specific skillsets and overall employability. While there is currently no cap on the total number of trainees that can receive grants, funding awarded to each individual trainee may not exceed $10,000.

Apprenticeship Job Creation Tax Credit

The Apprenticeship Job Creation Tax Credit (AJCTC) is provided specifically for those employed in Red Seal Trades, which includes skilled labourers such as carpenters, mechanics, welders, and more. The AJCTC is a non-refundable tax credit. The amount of the credit is determined by the applicant’s eligible wages and cannot exceed 10 percent of those wages, or a total of $2,000 per year. All Canadian businesses can carry unused credits as far as three years back and 20 years forward.

FedDev Ontario

The FedDev Ontario Productivity Training Incentive provides funding to established manufacturers I the Ontario region only. Funds can be used for in-house training projects or to pay for third-party training designed to increase overall productivity and improve export sales performance. Depending on the applicant’s budget, timeline, and desired training topics, available, non-repayable funding can total as much as $50,000. When open, the program accepts continuous applications and applicants are placed on a waiting list when funds aren’t available.

Apprenticeship Training Tax Credit

Also available to businesses in the Ontario area, the Apprenticeship Training Tax Credit can cover as much as 25 percent of eligible expenses for medium and large-sized businesses. Small businesses can obtain credits for up to 30 percent of eligible expenses, but credits do not exceed a maximum of $5,000 per year for each eligible apprenticeship and a total of $15,000 over the course of a 36-month period. The credit is designed to support skilled labourers, and a full list of eligible trades can be found in the Ontario Government’s General Guidelines for the program.

British Columbia Training Tax Credit

The British Columbia Training Tax Credit program has three elements. Funding can be used as a basic credit provides for non-Red Seal training programs, a completion credit for Red Seal and non-Red Seal training programs, or an enhanced credit for First Nations individuals and persons with disabilities. Provided by the British Columbia provincial government, the credit exists to subsidize eligible apprenticeship programs administered by the Industry Training Authority (ITA). Credit amounts depend up the type of apprenticeship and costs of job-specific training.

Fostering a Skilled Canadian Workforce

Proper training is vital to the creation of skilled labour throughout Canada. Businesses that elect to invest in comprehensive training programs are more likely to experience improved employee morale and engagement.

Showing employees that you’re invested in increasing their skills will also help you retain quality labour. The Canadian federal government, and its’ provincial partners, recognized the importance of skilled human capital when it comes to sustained business success. These training grants and credits are designed to provide funding for programs that will directly improve workplace skills throughout the country.


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Posted by: DSR
Tuesday, December 1, 2015
Tag: Business Start Ups
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