Financial Information

Apprenticeship is a cost-effective choice in comparison to most post-secondary training options. Apprentices are paid as they learn on the job and funding supports are available for them when they begin their in-school portion of their training. Many apprentices complete their training with no debt and additional assistance is available for those that choose to further their career!

Grants & Tax Deductions

The Manitoba Government covers the major portion of tuition fees for apprentices when they attend technical/in-school training. As a result, apprentices pay much lower tuition fees in comparison to most other post-secondary options. In some cases, employers may also choose to assist their apprentice with tuition fees and books, which makes an apprenticeship a cost-effective education alternative.

The Federal Budget of May, 2006 proposed the following funding measures related to apprenticeship;

Apprenticeship Incentive Grant $1,000 apprenticeship incentive grant for apprentices. Payment of the grant is conditional on the approval of funds for the program. Applications must be submitted to Service Canada.

NEW-Tuition Fee Income Tax Rebate Apprentice graduates are eligible to receive a 60% income tax rebate on eligible tuition fees (includes personal tuition fee contributions and tuition fee contributions paid on your behalf by the provincial government). Tuition Fee Income Tax Rebate helps support recently certified Journeypersons while living and working here in Manitoba.

NEW-Cooperative Education & Apprenticeship Tax Credit The Co-operative Education Tax Credit is expanded and renamed the Co-op Education and Apprenticeship Tax Credits. A new component added April 9, 2008, called the Journeypersons Hiring Incentive (J-HI) provides a tax credit to employers of recent graduates of apprenticeship programs.

Employer Job Creation Tax Credit Up to $2,000 is available to employers who hire apprentices.

Tradeperson's Tools Deduction The new tradesperson's tools deduction provides employed tradespersons with an annual deduction of up to $500 to help cover the cost of new tools necessary to their trade. The deduction applies to the total cost of eligible tools in excess of $1,000 acquired by an employed tradesperson. *Apprentice Mechanics - Additional tool deductions are available.

For more information about these federal government initiatives refer to the links above, OR, call toll-free at 1-800-O-Canada (1-800-622-6232) Monday to Friday from 8 a.m. to 8 p.m. (1-800-465-7735 - telecommunications device for the hearing impaired/deaf). General inquiries can also be directed to Service Canada by phone at 1-866-742-3644 or 1-866-909-9757 (for the hearing impaired). The 2006 Federal Budget Announcement is also available. The sections relating to apprenticeship can be found by selecting the “Quick Index” tab and “Apprentices” in the alphabetical index.

Other Federal Cost Incentives:

Capital Cost Tool Deduction The Capital Cost Allowance for Tools has received an increase to $500 from the $200 limit on the cost of tools eligible for the 100 percent capital cost deduction. The CCA is a non-refundable tax deduction that reduces taxes owed by permitting the cost of business-related assets (i.e. tools) to be deducted from income over a prescribed number of years. You can calculate your CCA claim by using the back of Form T777, Statement of Employment Expenses, and enter the amount on the applicable line on the from of the form AND on line 229 of your return.

For further information about the Capital Cost Allowance, refer to the link above or contact the Canada Revenue Agency directly by phone at 1-800-959-8281.

Other Provincial Cost Incentives:

CareerFocus Program Employers receive a wage incentive to assist in the creation of new career-related positions for Senior Years Apprenticeship Option students and benefit by having interested and motivated employees.

For further information about the CareerFocus Program, refer to the link above or contact the MB4Youth Division directly by phone at 204-945-3556 or toll-free at 1-800-282-8069 (ext. 3556)

Employment Insurance (EI)

As an apprentice, you may be eligible to receive employment income support from Service Canada while attending apprenticeship technical/in-school training.

To collect EI, you must have;

• Worked sufficient hours to qualify (usually a minimum of approximately 900 insurable hours, however this is dependant on unemployment rates and time of application)
• Paid into an EI account

Instructions to apply for EI Benefits;

1. Complete the EI application on or after your last day of work using the on-line application found at www.servicecanada.ca
2. Once you've entered the site, click on
   -On-line forms and services
   -Apply for employment insurance and benefits
3. To access, you will be asked to enter the Service Canada 16-digit reference code provided to you on the first day of class. If you have misplaced this number, contact Service Canada.
4. Once the application is complete and the application is successful, Service Canada will provide you with a confirmation number
5. You will also be required to supply a Record of Employment for all employment training during the past 52 weeks or since your last claim.

For more information and to receive an application contact Service Canada-Employment Benefits or 1-800-206-7218

*If you work for a relative, Revenue Canada makes the decision as to whether your employment is insurable. This process can delay benefits for a number of weeks while a ruling is being made. Contact Revenue Canada and verify if your employment meets the eligibility requirements criteria for Employment Insurance Benefits prior to the start of training.

Provincial Assistance

Living away from home allowance, travel, disability, child care etc.

This funding is offered through Employment Manitoba. On the first day of technical/in-school training, you will be asked to submit your application for further funding assistance as noted below.

To be eligible you must:

• Be able to establish an Employment Insurance Claim or
• Have had a benefit period end within the past 36 months or
• Have had a claim established for maternity or paternal benefits within the past 60 months

Employment Manitoba determines the amount of funding participants may receive. Eligible costs may include:

Tuition - Employment Manitoba pays all tuition costs (less required participant contribution) for EI insured individuals in apprenticeship training.
Living Allowance- Participants who are EI active will receive EI benefits during in-class training.
Child Care – Assists with additional costs of supervised care while in technical training. Receipts may be requested.
Commuting Allowance –If you have travel more than 60 kilometers each day to get to and from the training institution, based on standard mileage charts used by the Employment Manitoba.
Living-Away-From-Home Allowance-If you maintain a primary residence and pay for a second residence while in technical training.
Travel Assistance-To help pay transportation costs between your home and the place of technical training at the beginning and end of your course.
Disability Allowance-If you are disabled and need special arrangements or a device in order to participate in the course. “Disabled” means having a persistent physical, mental, psychiatric, sensory or learning impairment.

If you have questions regarding your eligibility for provincial assistance, contact Employment Manitoba , 1-800-523-4732

* Apprentices who do not meet the criteria above may be eligible for funding assistance through the Apprenticeship Branch.

Funding Assistance for First Nations Bands or Manitoba Metis Federation (MMF)

If you belong to a First Nations Band they may help cover the costs of travel, tuition, books, emergencies or living-away-from-home-allowance. The Manitoba Métis Federation may also help with costs. To be eligible for financial help, you must be Métis, non-status,or Inuit and have lived in your region for six months.

Contacts for Regional Area Management Board:

Interlake: 204-646-2706
Northwest: 204-638-9485
The Pas: 204-623-5701
Thompson: 204-677-1430
Southeast: 204-754-2721
Southwest: 204-725-7520
Winnipeg: 204-947-9287

When your receive your Technical Training Notice in the mail from the Apprenticeship Branch consult your Band or Manitoba Métis Federation Regional office and ask them to write a letter addressed to you identifying what they will pay for. Bring this letter to your first day of class and forward a copy to:

Manitoba Competitiveness, Training and Trade
The Apprenticeship Branch
Director of Field Operations
1010-401 York Avenue
Winnipeg MB R3C 0P8

Financial Assistance for a Start-Up Business

Financing opportunities are available to encourage aspiring journeyperson's to further their career and become their own entrepreneur.

Presently, the Canadian Youth Business Foundation is offering start-up financing of up to 15,000 for entrepreneurs between the ages of 18-34. More information is available at the CYBF website.

Other contacts:
Canada Business-Services for entrepreneurs
Women's Enterprise Centre

Income Tax Information

The full cost of your technical/ in-school training may be considered for a tax credit even though as an apprentice, the majority of your tuition cost is covered by the government. You will receive a Manitoba Education Tax Credit Form-T2202A from the college you attended to claim on your Income Tax forms. You will also receive a T4A/E for outlining your tuition fees.

Where do I get my T2202A form?

• If you attend Red River College, go to www.rrc.mb.ca, click on the me@rrc link, enter your username and password (if you do not know your username and password contact RRC at 204-632-2217).
• If you attend University College of the North it normally gets sent the first week of February.
• If you attend Assiniboine Community College, go to www.assiniboine.net.

Other Common Questions:

Q: I got a T4A/E in the mail and it says I received a bursary, I didn't get money?
A: The student seat cost is paid on their behalf. Students are only responsible for paying their personal contribution (approx $200/yr).

Q: Do I have to claim my T2202A?
A: Yes, this is a school tax credit.

Q: I’ve done my income taxes and I owe. My accountant says it’s because of my schooling. Why?
A: It may be because you didn’t claim the T2202A.

Q: I’ve lost my T4A/E, or I’ve recently moved who do I call to ensure that I receive my T4A/E?
A: Call the Apprenticeship Branch.

Q: Can I pick up my T4A/E?
A: No, for FIPPA reasons.

For further information about Apprenticeship and your income tax, contact the Canada Revenue Agency at 1-800-959-8281.

Apprentice Budget While in Technical Training

You will want to set a budget for your technical/in-school training period. It should be based on your experiences and your expected income. This worksheet will help you estimate a monthly budget. Fill in the sections that apply to you.

Be sure to:

• Review your expenses, be accurate and realistic about your spending
• Review your financial resources and income
• Explore all possible sources of finances including awards, bursaries,
  student loans, band or community funding
• Monitor your expenses using a weekly or monthly review of any
  expenses you’ve incurred or purchases you have made. You may have to make adjustments to your budget along the way as
  your income and expenses vary.

Download the Monthly Budget Worksheet (24 KB)