Co-op Students Hiring Incentive
Highlights
This program is a fantastic opportunity for your business. It offers tax credits for hiring students and graduates from registered co-operative education programs. By participating, you can claim 15% of wages and salaries, up to a maximum of $5,000 per student. This can significantly reduce your payroll costs while bringing fresh talent into your company.
Key Benefits:
- Financial Savings: Up to $5,000 per student in tax credits.
- Talent Acquisition: Access to skilled students and graduates ready to contribute.
- Flexibility: Credits apply to both co-op students and graduates, allowing you to choose the best fit for your needs.
Applying is straightforward, and qualifying is easy since your business already meets the criteria. This program not only helps you financially but also supports the growth and development of your workforce.
Financing Details
Type of Financing: Tax Credit
Repayment Terms and Interest Rates:
- There are no repayment terms or interest rates, as this is a tax credit.
Eligible Expenses:
- Wages and salaries for students hired as part of a registered co-operative education program.
- Wages and salaries for graduates hired for full-time employment related to their field of study.
Use of Funds:
- The funds can be used to cover up to 15% of wages and salaries.
- Maximum of $5,000 per student or graduate.
Restrictions on Use of Funds:
- The funds cannot be used for any expenses other than wages and salaries for eligible students and graduates.
Fees:
- There are no fees associated with this tax credit program.
Qualifications
- Must be a taxable corporation or an exempt corporate entity.
- Must be an unincorporated employer (can claim the refundable credit on the individual income tax return).
- Must hire students or graduates from registered co-operative education programs.
- Must be hiring for work placements or full-time employment related to the student's field of study.
Must be operating in Manitoba.
Disqualifications:
- Crown corporations.
- Other provincial government entities.
Description
This program offers tax credits to help you hire students and graduates from co-operative education programs.
You can claim 15% of wages and salaries you pay to these students, up to a maximum of $5,000 per student. This applies to both current students and recent graduates.
The credits are fully refundable, meaning you can get money back even if you don’t owe taxes. This is a great way to reduce your hiring costs and bring fresh talent into your business.
Program Steps
Gather Required Documentation: Prepare the necessary documents to support your application. You will need:
- Business registration details
- Financial statements
- Proof of wages and salaries paid to co-op students or graduates
- Details of the co-operative education program
Complete the Co-op Program Approval Application Form: Fill out the Co-op Program Approval Application Form available on the Manitoba government website.
Submit the Application Form: Send the completed application form and required documentation to the Post-Secondary Institutions Branch. You can submit via mail, fax, or email:
- Mail: 400 – 800 Portage Avenue, Winnipeg MB R3G 0N4
- Fax: 204-945-1841
- Email: [email protected]
Contact Manitoba Tax Assistance Office: If you need information on how to claim the Paid Work Experience Tax Credit on your income tax, contact the Manitoba Tax Assistance Office:
- Telephone: 204-948-2115 or 1-800-782-0771 (outside Winnipeg)
- Fax: 204-948-2263
- Email: [email protected]
Wait for Approval: Once your application is submitted, wait for confirmation and approval from the Post-Secondary Institutions Branch.
Claim the Tax Credit: After approval, claim the tax credit on your income tax return. Ensure you keep all records and documentation for verification purposes.