Starting a business can be an exciting but challenging endeavor, especially when it comes to finding the right employees to help your business grow. Fortunately, the government of Alberta offers several employment grants specifically aimed at incentivizing the hiring of students. These grants not only provide financial assistance to businesses but also support the overall development of Alberta’s workforce.
In this article, we will explore the various employment grants available in Alberta for hiring students and discuss how they can benefit your business.
1. The Summer Temporary Employment Program (STEP):
The Summer Temporary Employment Program (STEP) is a popular employment grant in Alberta that encourages businesses to hire students during the summer months. This program provides funding to eligible employers to create summer job opportunities for students aged 15 to 30. Some key points to consider about STEP include:
a) Eligibility criteria: Businesses must be registered in Alberta and operate in the province. Additionally, employers are required to provide a minimum of 4 weeks of full-time employment (minimum 30 hours per week) or 7 weeks of part-time employment (minimum 15 hours per week).
b) Wage subsidy: STEP offers a wage subsidy of $7 per hour, up to a maximum of 37.5 hours per week. However, the employer is responsible for paying the remaining portion of the employee’s wages.
c) Benefits for students: Through STEP, students gain valuable work experience, develop their skills, and earn income during their summer break. This program contributes to their personal and professional development while helping them cover their education-related expenses.
2. The Summer Temporary Employment Program (STEP) for Indigenous Youth:
In addition to the regular STEP program, the government of Alberta also offers a specific version of the program focused on creating employment opportunities for Indigenous Youth. This initiative aims to address the unique challenges faced by Indigenous students when entering the workforce. Key features of this program include:
a) Eligibility criteria: Businesses must meet the same eligibility criteria as the regular STEP program. However, it is essential to note that only Indigenous youth aged 15 to 30 are eligible for this specific grant.
b) Wage subsidy: Similar to the regular STEP program, this initiative provides a wage subsidy of $7 per hour, up to a maximum of 37.5 hours per week. The employer is responsible for the remaining portion of the employee’s wages.
c) Promoting inclusivity: By encouraging the hiring of Indigenous youth, this program supports diversity and inclusion within the workforce, fostering greater cultural understanding and providing employment opportunities to those who may face additional barriers.
3. The Alberta Co-op Tax Credit:
The Alberta Co-op Tax Credit is another employment grant aimed at supporting businesses in hiring students. This program provides a tax credit to employers who hire post-secondary students enrolled in cooperative education programs. Key points about this program include:
a) Eligibility criteria: Employers must be registered in Alberta and hire students enrolled in a recognized co-operative education program at a post-secondary institution in Alberta.
b) Amount of tax credit: The Alberta Co-op Tax Credit provides employers with a tax credit of up to 25% of the wages paid to eligible co-op students, up to a maximum of $5,000 per student per work placement. This credit can be used to offset a wide range of taxes, including corporate income tax, education tax, and more.
c) Supporting professional development: By hiring co-op students, businesses not only contribute to their academic journey but also benefit from their fresh perspectives, enthusiasm, and willingness to learn. This program strengthens the connection between education and the workforce while helping businesses meet their recruitment needs.
4. The Canada-Alberta Job Grant (CAJG):
Although not specific to hiring students, the Canada-Alberta Job Grant (CAJG) can still be utilized by businesses to support their student hiring efforts. This program provides direct financial support to businesses for investing in employee training. Key features of the CAJG include:
a) Eligibility criteria: Businesses of all sizes and from various sectors are eligible to apply for the CAJG. Employers must be located in Alberta and contribute at least one-third of the total costs of the training provided.
b) Funding amount: The CAJG can provide up to two-thirds of the total eligible training costs to a maximum of $10,000 per trainee. This grant can be used to cover various types of training, including on-the-job training, online courses, and more.
c) Enhancing employee skills: By utilizing the CAJG, businesses can invest in the professional development of their employees, including students. This grant allows employers to enhance the skills of their workforce, making them more productive and efficient.
Employment grants in Alberta provide significant opportunities for businesses to hire students, contribute to their education, foster their professional growth, and support the development of a skilled labor force. By taking advantage of these grants, businesses not only save on labor costs but also gain access to a motivated and diverse pool of talent. As you embark on your journey of starting a business in Alberta, make sure to explore these employment grants and tap into the potential they offer for a successful and thriving venture.
