Ontario programs for small businesses that are hiring and training

Wages and training are usually a small business's biggest costs, and several government programs share them. Support comes in four main forms: training grants that cover part of a course, wage subsidies for a new hire, tax credits tied to apprentices or co-op students, and workforce programs that place interns or students with an employer. We currently track 6 Ontario and 5 federal programs in this area that are open or ongoing and that small businesses can use.

Ontario programs that are open or ongoing

These are ranked by our score, which rewards programs that pay more for less work and that many employers can qualify for:

• Apprenticeship Achievement Incentive (employer and group sponsor milestone payments)Ongoing, Up to $17K

  Pays employers and group sponsors at apprentice milestones: registration, each in-class level, and certification.

  Ministry of Labour, Immigration, Training and Skills Development

• Canada-Ontario Job Grant (COJG)Ongoing, Up to $15K

  Helps individual Ontario employers pay for short-term training for existing or new employees, with the government covering a share of eligible training costs.

  Ontario Ministry of Labour, Immigration, Training and Skills Development (federal-provincial cost-shared)

• Ontario Job Grant (formerly Canada-Ontario Job Grant)Ongoing, Up to $15K

  Helps employers pay for short-term third-party training for new or existing employees. Employer and government share the training cost.

  Ministry of Labour, Immigration, Training and Skills Development (Employment Ontario)

• Ontario Co-operative Education Tax CreditOngoing, Limit $3K

  Refundable credit for employers that hire post-secondary co-op students in qualifying work placements.

  Ontario Ministry of Finance / Canada Revenue Agency

• NOHFC Workforce Development Program (internships)Ongoing, Up to $35K

  Funds internship salaries for Northern Ontario employers.

  Northern Ontario Heritage Fund Corporation (NOHFC)

• Starter Company PlusOngoing, Up to $5K

  Training, mentoring and a grant for people starting, expanding or buying a business.

  Ontario Ministry of Economic Development, Job Creation and Trade (via Small Business Enterprise Centres)

Federal programs for the same job

Federal programs often work through national organizations or student placements and are not limited to Ontario employers. Examples include support for wages of interns, students or researchers placed with a business, and programs that help keep workers employed:

• Mitacs AccelerateOngoing

  Matches partner contributions to fund research internships connecting businesses and organizations with university researchers and trainees.

  Mitacs

• Work-Sharing Program (EI)Ongoing

  Employment Insurance support that lets employers avoid layoffs during a temporary drop in business by reducing hours while employees receive EI income support for the lost time.

  Employment and Social Development Canada / Service Canada

• Science and Technology Internship Program (STIP) - Green JobsOpen

  Funds employers to hire, train and mentor youth in energy, forestry, mining, earth sciences and clean technology roles for up to 12 months.

  Natural Resources Canada, delivered through STIP - Green Jobs delivery organizations

• Compensation for Employers of Reservists ProgramOpen

  One-time financial support to civilian employers and self-employed reservists to offset operational costs when a reservist employee deploys on full-time operational duty.

  Employment and Social Development Canada (Reserve Force employer support)

• Mitacs Business Strategy Internship (BSI)Ongoing, Up to $15K

  Matches partner funds to place students, postdocs and recent graduates in business-strategy and innovation projects at Canadian organizations.

  Mitacs

How training grants usually work

Training grants typically share the cost of short, third-party training for new or existing employees. The employer chooses an eligible provider, pays the upfront cost, and is reimbursed a percentage after the training is complete and documented. The Ontario Job Grant is a good example of the pattern: according to the official page, Ontario Job Grant (formerly Canada-Ontario Job Grant) is ongoing and its published terms say the following:

Up to $10,000 per trainee; up to $15,000 per trainee for employers with fewer than 100 employees training previously unemployed new hires. Employers with 100+ employees: government covers half of training costs; employers under 100 pay at least one-sixth, and nothing for previously unemployed new hires.

Percentages and caps differ by employer size, so check which tier you fall into before budgeting. As a rule, you will need to keep records of the training, proof that the employee completed it, and proof that you paid the invoice.

Wage subsidies and internships

Wage subsidies reduce what you pay for a specific person for a limited period. They usually require that you create a real job or placement, that the person is eligible under the program, and that the work is not simply replacing an existing employee. Internship programs such as the ones listed above pair you with a student or graduate and cover a share of the wage, which can make a first hire much less risky.

Apprenticeships and co-op placements

Hiring apprentices and co-op students can also earn incentives and tax credits. Tax credits are claimed on your corporate tax return after the wages are paid, so they help your bottom line later rather than your cash flow now. If you are in the skilled trades, check the apprenticeship programs in the list above and confirm which ones apply to your trade and employer size.

Tips before you apply

• Apply before you hire or start training whenever possible. Many programs only cover activity that begins after approval.
• Keep payroll, invoices and attendance records. Most programs audit or ask for proof.
• Confirm whether the program pays you or the training provider, and when.
• Check stacking rules if you combine a wage subsidy with a tax credit.

Browse the full list at skills, hiring and training programs for small businesses, narrow it to Ontario programs for small businesses, or read how to check your eligibility.