To be eligible for the Federal Youth Hires Program, employers must have experienced an increase in their EI premiums for employees aged 18 to 24 in 1999 or 2000, compared to the premiums paid for this target group in 1998. There is no maximum premium relief amount. All that’s required is that the individuals were between the ages of 18 and 24 at some time during 1998, 1999 or 2000.

Under the Federal Youth Hires Program, employers have two options: they can either adjust their premium payments during the year; or they can claim premium relief after the end of the year when they file their T4 summary and supplementaries.

New employers who start a business in 1999 or 2000 are also eligible. This relief is available even if new employees are not hired in 1999, providing the 1999 insurable earnings for this target group exceed their insurable earnings for 1998.

Associated groups of employers — including employers associated under the Income Tax Act or employers who acquire a business or part of a business — calculate the premium relief as if they were a single employer. For this purpose, individuals or partnerships are considered to be corporations. For instance, if a sole proprietor incorporates on May 9, 1999, the proprietor and the corporation will be considered associated under the program.

The premium relief either reduces your deductible EI premiums or is included in your income for the year. There is no effect on employee EI premiums.

Wilkinson & Company can help you take advantage of the Federal Youth Hires Program. To learn more, please call us at 966-5105 or 392-2592.