Ontario Hiring, Training & Apprenticeship Incentives (2025 Guide)

Co-operative Education Tax Credit (CETC)

• Eligibility: Ontario businesses (corporations, partnerships, and sole proprietors who employ apprentices) hiring students enrolled in an eligible co-operative education program at a recognized Ontario post-secondary institution. Both public and private sector employers may qualify, but restrictions may apply for certain government-funded institutions.
• How much? 25% (30% for small businesses) of eligible salaries/wages paid, up to $3,000 per qualifying placement or work term. A "small business" is generally an employer with under $400,000 in total payroll.
• Claim process:
  1. Hire a student enrolled in a recognized Ontario post-secondary co-op program for a work term.
  2. Track all wages and dates of employment for each placement.
  3. File Ontario Schedule 550 (CETC) with your T2 corporate tax return, referencing the co-op program, student, and placement dates.
  4. Keep all payroll, placement, and program documentation for at least six years.
• Documentation: Official co-op placement agreement, payroll records showing student wages for each term, letter from the post-secondary institution verifying eligibility, and proof of payment.
• Stacking: May be combined with federal wage subsidies (e.g., Student Work Placement Program, SWPP), Canada Summer Jobs, and other hiring grants, provided you do not double-claim the same dollar. The total government assistance cannot exceed 100% of actual wages paid to the student.

Apprenticeship Training Tax Credit (ATTC)

• Eligibility: Ontario businesses employing apprentices in qualifying skilled trades registered under the Ontario apprenticeship program. Applies to both new hires and existing employees registering as apprentices. Both corporations and unincorporated businesses may be eligible. The trade must be on the Ontario list of qualifying trades (Red Seal or designated provincial trades).
• How much? 25% (30% for small businesses) of eligible wages/salaries, up to $5,000 per year per apprentice for the first 36 months. Maximum lifetime credit per apprentice is $15,000. The definition of "small business" is the same as for CETC.
• Claim process:
  1. Register the apprentice with the Ontario Ministry of Labour, Training and Skills Development.
  2. Track all eligible wages/salaries, start and end dates of the apprenticeship.
  3. File Ontario Schedule 556 (ATTC) with your T2 return. Provide details of the apprentice, trade, registration number, and eligible payroll.
  4. Retain copies of the official registration and all supporting payroll records for at least six years.
• Documentation: Ministry registration for the apprentice, payroll and T4 records, apprentice's employment contract, details of the trade, and supporting calculation worksheets.
• Stacking: Can often be combined with the federal Apprenticeship Job Creation Tax Credit (AJCTC), wage subsidies, and other supports (see below). Never claim more than 100% of actual wages paid.

Ontario Job Grant (COJG)

• Eligibility: Ontario employers (all sectors/size) hiring new or upskilling existing employees through third-party training providers (colleges, trainers, business schools, etc.). Any business with a CRA payroll account and operating in Ontario may apply.
• How much? Covers up to 2/3 of eligible training costs, to a maximum of $10,000 per trainee per year. Employers must contribute at least 1/3. Training must not be mandatory (i.e., not required by law).
• Claim process:
  1. Identify eligible employees and select an external training provider.
  2. Apply online via the Ontario Job Grant portal before starting training.
  3. Receive pre-approval and signed funding agreement.
  4. Complete training and submit proof of payment and completion.
  5. Reimbursement is provided after proof of successful completion and payment.
• Documentation: Application approval, signed training agreement/invoice, proof of payment, and training completion certificates for each employee.
• Stacking: May be combined with certain wage subsidies and tax credits, but not for the same training expense. The same dollar of training cannot be claimed under multiple programs.

Wage Subsidies & Federal Stacking Opportunities

• Canada Summer Jobs: Wage subsidies for hiring youth (15–30) for summer employment. Apply early each year via the federal portal. Covers up to 50% of minimum wage (100% for non-profits).
• Student Work Placement Program (SWPP): Up to 70% wage subsidy for hiring eligible post-secondary students in work-integrated learning roles (STEM, business, etc.). Application is through a network delivery partner (e.g., Magnet, ECO Canada, BioTalent, etc.).
• Apprenticeship Job Creation Tax Credit (AJCTC): 10% federal tax credit for hiring eligible apprentices in Red Seal trades, up to $2,000 per year per apprentice. Stackable with Ontario ATTC.
• Other Wage Subsidies: Ontario and federal programs support hiring Indigenous, newcomer, or underrepresented groups—see government portals for current programs (e.g., Youth Employment Program, Indigenous Skills and Employment Training, etc.).

Eligibility & Claim Process: Step-by-Step

1. Determine which credits/grants your business and new hires are eligible for (e.g., co-op, apprentice, youth, targeted group).
2. Register employees/apprentices with the appropriate Ontario ministry or post-secondary institution. Obtain all official registration numbers and documentation.
3. Keep all payroll, contract, training, and placement records. Obtain registration numbers where needed.
4. File the required Ontario schedules (CETC: Schedule 550; ATTC: Schedule 556) and federal forms (e.g., AJCTC) with your T2 corporate tax return.
5. Apply for Ontario Job Grant and wage subsidies via government portals before hiring/training begins. Retain approval notices and grant agreements.
6. Retain all documentation for at least 6 years for audit support.

Audit Risk, Common Errors & Best Practices for Ontario Hiring Claims

• Always keep original payroll, contract, training, and placement records for at least 6 years. CRA and the Ontario Ministry may request these during audit.
• Double-claiming the same wage/training expense for multiple credits or grants is a common audit trigger—keep a worksheet allocating amounts to each program.
• File all required forms and schedules (Schedule 550, 556, AJCTC T2038, etc.) accurately. Missing or incomplete forms may result in denied credits.
• Apply for wage subsidies and the Job Grant before hiring or training begins; retroactive claims are rarely accepted for grants.
• For apprenticeships, always keep the official government registration letter and track start/end dates for each apprentice and trade.
• Consult with your payroll provider/accountant to ensure all claims are properly coordinated and tracked on your tax return.

Maximizing Your Ontario Hiring Incentives: Tips & Best Practices

• Coordinate claims between Ontario and federal programs to avoid double-claiming the same dollar of wage or training expense. Keep a spreadsheet tracking all sources of government support.
• Apply for wage subsidies before hiring or training starts—retroactive claims are rarely accepted.
• Use co-op and apprenticeship credits to build your talent pipeline and reduce onboarding costs for new graduates.
• Consult with your payroll provider or accountant to ensure all credits are properly claimed on your tax return and subsidies are tracked.
• Monitor annual funding cycles and deadlines for grant programs to maximize your benefit.

Frequently Asked Questions

Related Ontario & Federal Business Tax Credit Guides

• Ontario Business Tax Credits Directory
• Canada-Wide Business Credits
• Ontario Innovation & SR&ED Tax Credits
• Other Ontario Business Credits & Deductions
• Startup Tax Incentives
• Canada-Wide Small Business Deductions

For wage subsidy and job grant details, visit the Ontario Job Grant portal or Federal Student Wage Subsidies.