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?