The funding journey
Chapter two

Hiring your
first employee.

The most expensive switch in a founder's life. Going from zero to one employee adds payroll taxes, source deductions, training obligations, and legal liabilities. The good news: there is funding for almost every dollar you spend on a first hire.

§ 01

The Canada Job Grant
pays for training.

Up to two thirds of training costs, capped at $10,000 per trainee per year. This applies to existing employees AND new hires. Most provinces administer their own version with the same cap.

The application window matters: you must apply before training starts. After the fact, no money. Plan training as part of onboarding and apply at the point of offer, not at month three.

Eligible costs include tuition, books, mandatory training fees, exam fees, and approved travel. Not eligible: salary during training.

Apply for the Canada Job Grant before the first day of training. Not after.

§ 02

The Apprenticeship Job Creation credit
pays for hiring an apprentice.

Up to $2,000 in non-refundable tax credit per apprentice in their first two years, for trades on the Red Seal list. If your trade is on the list and you hire an apprentice, this is automatic at tax time.

Provincial credits often stack: Alberta, Ontario, Quebec, and BC each run their own apprenticeship credits, typically 20 to 30 percent of wages up to a similar cap.

§ 03

The Student Work Placement Program
pays for hiring students.

For postsecondary students doing co-ops or internships, the federal program covers up to 75 percent of wages, capped at $7,500 per placement. For first-time student employers, the cap rises to $7,500.

You apply through one of the program delivery partners (ICTC, BioTalent Canada, Magnet, etc.), not directly to the federal government. Each partner runs their own intake.

§ 04

The math of stacking
on a first hire.

A junior developer hired on July 1 at $65,000: the Canada Job Grant can cover $10,000 of bootcamp training they did before starting. The Student Work Placement Program could fund the first 16 weeks at 75 percent if they are a co-op student. The Ontario Apprenticeship Training credit applies if it is a recognized trade.

A small business might recover $20,000 to $35,000 of the first $65,000 in payroll. That is the difference between a profitable first year and a brutal one.

Mistake to avoid

Hiring without registering for payroll source deductions first. CRA assesses penalties even for late or unfiled remittances. Set up a payroll service before the offer letter.