Receive A Fantastic Tax Credit when hiring a co-op student

Posted on Wednesday, June 22nd, 2016

Hiring a co-op student is not only a tremendous addition to your workforce, but it could also help save you a bit of cash on tax day.moneymagpie_tax-credit

If your organization decides to hire a co-op student fora work placement, you could be eligible for the Government of Ontario’s Co-operative Education Tax Credit.

“Many organizations we partner with cite the tax credit as being extremely beneficial,” says David Hall, Manager(Acting) of Co-op Education, Algonquin College. “Being able to write off some of the costs incurred from hiring new employees can be invaluable, especially for small businesses.”

This tax credit reimburses 25% of eligible expenditures to your organization, or up to 30% for small businesses.A small business is defined as a corporation, partnership or an individual with one or more unincorporated businesses whose total payroll in the previous year was $400,000 or less.

Most tax-paying organizations qualify for this credit, which can be used to recover the costs of employing a student, including

  • Salaries and wages including taxable benefits (i.e., the amounts reported on the T-4 slip) paid or payable to the student for the placement. The student’s salary must be attributable to an Ontario permanent establishment (place of business).
  • Fees paid or payable to an employment agency for the work placement for services of a student carried out primarily at an Ontario place of business.

If you would like some more information about the Government of Ontario tax credit, please click here: http://www.fin.gov.on.ca/en/bulletins/ct/pdf/4014.pdf

If your organization thinks that they might be interested in learning more about the co-op program, please visit our website at https://www.algonquincollege.com/coop/, connect with us at coop@algonquincollege.com or call us at 613-727-4723 Ext.7623


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