Training tax credit for employers frequently asked questions
The following will help answer your questions about the training tax credit.
What is included in salary and wages?
Eligible salary and wages are the gross salary and wages payable by the employer to an eligible apprentice. It does not include remuneration based on profits, bonuses, and taxable benefits including stock options, and certain unpaid remuneration.
Is the refund taxable for employers?
Yes, the training tax credit is considered to be government assistance and therefore must be included either as taxable income or as a reduction of expenses or costs.
What level or hours has the apprentice completed?
All the information needed to claim the credit is on the apprentice's Industry Training Authority (ITA) transcript. For non-Red Seal programs, the first 24 months is measured by the date appearing on the apprentice's ITA trainee registration card.
What happens when two or more related employers employ the same apprentice?
Special rules apply to ensure that the maximum amount for a credit is shared between related employers. Where two or more related employers employ the same apprentice, the total of all training tax credits claimed by each employer may not exceed the maximum claim available if only a single employer were entitled to claim a tax credit in respect of that apprentice.
If our employee challenges a program, are we eligible to claim the training tax credit?
No. An employer is not eligible to claim the training tax credit (certification tax credit) when an employee challenges a program to receive trade certification.
Who administers the training tax credit?
The Canada Revenue Agency (CRA) reviews and audits claims and issues refund cheques where appropriate. If a person or a corporation disagrees with the amount of the credit assessed by the CRA, a Notice of Objection should be filed within 90 days of the date of the Notice of Assessment.