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CO-OP Student

A taxpayer is interested in hiring a co-op student and utilizing the co-operative education tax credit.

We understand the following:

  • Max credit is $3,000.00 and 30% of wages (payroll last year was below $400k)
  • Institution must certify the placement as a qualifying work placement
  • Eligible employers must have a certified document from an eligible education institution
  • Tax credit will be claimed on T2SCH550 (all conditions must be met)
  • Employer is not required to provide the student with vacation pay, overtime pay, statutory holidays
  • CPP and EI employer contributions will be made

Does anyone have any additional thoughts/references?

Thanks kindly