The current Apprenticeship Training Tax Credit (ATTC) Program does not include Hospitality Red Seal positions. Moreover, Ontario is the only province in the country without a rebate program to support accreditation in the hospitality industry. The ATTC reimburses corporations and unincorporated businesses 25 per cent of eligible expenditures up to a maximum tax credit of $10,000 per qualifying apprentice per taxation year. For corporations and unincorporated businesses that have total salaries and wages for the previous taxation year of $400,000 or less, the rate of the tax credit is increased to 35 % and 40% for small businesses. The ATTC is extended to numerous industries and occupations and should be extended to hospitality as well. The tax credit is an important incentive for small employers to take on an apprentice and upon completion of a program the tax credit would serve as recognition of the significance of having played a role in bringing more skilled workers into the industry.
The expansion and promotion of the apprenticeship program is an important component of addressing the labour shortage, and promoting the hospitality and tourism industry as a viable career choice. Moreover it will support the Specialized High Skills Major program offered in secondary schools which includes a focus on hospitality and tourism among other underrepresented labour markets. Very importantly, this program will support delivering “Service Excellence” by building job confidence and developing enhanced skills. Apprenticeships offer real skills, knowledge and techniques the students will need to prepare culinary dishes the correct way. By starting out as apprentices, students can be well on their way to an exciting and rewarding career as a chef, cook or baker.
The Details Behind the Apprenticeship Training Tax Credit
There are four government bodies associated with the administration of the Apprenticeship Training Tax Credit (ATTC). The roles of these parties are briefly described below:
- The Ontario Ministry of Training, Colleges and Universities (MTCU) assists with the promotion of the ATTC to employers and the general public. MTCU is also responsible for the registration of eligible apprentices and should be the first point of contact for parties interested in employing or becoming an apprentice.
- The Canada Revenue Agency (CRA) administers the ATTC through the federal tax system. The CRA is responsible for providing administrative support related to filing claims such as forms distribution, verification and audit functions, interpretations and rulings. Employers deal directly with CRA when filing their ATTC claims.
- The Ontario Ministry of Revenue (REV) evaluates service delivery and performance related to the administration of this credit and issues general information regarding the ATTC.
- The Ontario Ministry of Finance (FIN) sets overall policy, is responsible for ATTC legislation, funding and determines what trades are ATTC eligible.
According to the Ministry of Finance, the objective of the ATTC is to focus the government’s limited resources on sectors where there are looming skilled shortages and areas that are central to Ontario’s ability to export products and compete in a global economy. Qualifying skilled trades include designated construction, industrial and motive power trades as well as certain service trades. It is not acceptable to not include the Cook and Baker-Pattissier positions in the qualified category.
The ATTC is one program in a wide range of government support for apprenticeship training in Ontario. For example, Ontario provides support to help workers enter and complete apprenticeships with programs that include:
- grants of up to $2,000 to apprentices and $1,000 to employers when training is successfully completed;
- opportunities for apprentices to complete more of their in-school training up front if work placements are temporarily unavailable; and
- grants of up to $1,500 per term to help apprentices with the cost of school when they are not eligible for employment insurance
More Information:
- The number of years an employer can claim the credit for an eligible apprentice rose from three years (36 months) to four years (48 months) from the date of the original registration of the apprentice
- The maximum amount an employer can claim for each eligible apprentice rose to $10,000 per year from $5,000
- Employer reimbursement rates were increased
- The program’s status changed from temporary to permanent
- There is no correlation between Apprenticeship Training Tax Credit (ATTC) eligibility and being a Red Seal trade, however the two trades of the hospitality industry not qualifying for ATC credit’s in Cook Branch 2 and Baker-Pattissier are Red Seal trades. There are 50 Red Seal trades; Ontario participates in 46 of the 50 Red Seal Trades and 40 0f the 46 are ATC eligible. In total, there are 120 ATTC eligible trades in Ontario.
- “Eligible apprentice” is being confused with the ATTC criteria with the federal government criteria for their tax credit initiatives that are only available for Red Seal trades.
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