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McKinnon Germann Granger: Chartered Professional Accountants Duncan, BC

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Apprentices
Available to apprentices enrolled in a Red Seal trade program


Red Seal Trades – Apprentices


Available to apprentices enrolled in a Red Seal trade program: http://www.itabc.ca/Page496.aspx
Apprenticeship Incentive Grants (AIG)
   • $1000 paid directly to apprentice on completion of Level 1
   • $1000 paid directly to apprentice on completion of Level 2
   • Must apply for grants through Service Canada, online application is recommended: http://www.servicecanada.gc.ca/eng/goc/apprenticeship/incentivegrant/application.shtml
   • Amounts received are taxable and reported on a T4A slip and your income tax return


BC Training Tax Credits


   • $2000 for completion of Level 3 and $2500 each for completion of Level 4 & 5
   • Paid via a BC refundable tax credit claimed on your tax return, unused portion is refundable
   • The BC training tax credits are not taxable to the apprentice


Apprenticeship Completion Grant (ACG)


   • $2000 paid directly to the journeyperson on completion of the apprentice program
   • Must apply for grants through Service Canada, online application is recommended:  http://www.servicecanada.gc.ca/eng/goc/apprenticeship/completiongrant/application.shtml
   • Amounts received are taxable and reported on a T4A slip and your income tax return


Red Seal Trades – Employers


Federal Non-Refundable Credit


   • 10% of eligible wages ($2000 max) paid to each apprentice in the 1st 24 months of their program
   • Not based on levels completed, but start date of program
   • Credit is used to reduce or eliminate federal taxes payable via claim on income tax return
   • Unused amounts can be carried back 3 years or forward 20 years
   • Amount of credit claimed is added to taxable income in subsequent year


Provincial Refundable Credit


   • 15% of eligible wages ($2500 max) paid to each apprentice in the 12 months up to Level 3 completion
   • 15% of eligible wages ($3000 max) paid to each apprentice in the 12 months up to Level 4 completion
   • 15% of eligible wages ($3000 max) paid to each apprentice in the 12 months up to Level 5 completion
   • Amount of credit claimed is added to taxable income in subsequent year
   • Paid via a BC refundable tax credit claimed on your tax return, unused portion is refundable

 

Non-Red Seal Trades – Apprentices


BC-Recognised programs administered through the Industry Training Authority are eligible: http://www.sbr.gov.bc.ca/documents_library/TTC/TrainingTaxCreditTableforEmployers.pdf


Provincial Refundable Credit


   • $1000 each, for completion of Level 1 & 2
   • $2000 for completion of Level 3
   • $2500 each, for completion of Level 4 & 5
   • Paid via a BC refundable tax credit claimed on your tax return
   • The BC training tax credits are not taxable to the apprentice

 

Non-Red Seal Trades – Employers


Provincial Refundable Credit


   • 20% of eligible wages ($4000 max) paid to each apprentice in the 1st 24 months of their program
   • 15% of eligible wages ($2500 max) paid to each apprentice in the 12 months up to Level 3 completion
   • 15% of eligible wages ($3000 max) paid to each apprentice in the 12 months up to Level 4
   • 15% of eligible wages ($3000 max) paid to each apprentice in the 12 months up to Level 5
   • Paid via a BC refundable tax credit claimed on your tax return, unused portion is refundable
   • Amount of credit claimed is added to taxable income in subsequent year

 

 

Disclaimer: While every effort has been made to ensure the accuracy of the information provided, it is a summary for illustrative purposes only. This information is not intented to be a substitute for professional advice or the Canadian Income Tax Act. McKinnon Germann Granger does not accept any liability for actions taken in reliance on any information contained within this document, or any errors or omissions contained within it.

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Apprentices : Available to apprentices enrolled in a Red Seal trade program