If your company qualifies for the Scientific Research and Experimental Development (SR&ED) tax credits offered by the federal government, a co-op student hired to work on the research can have their salary included in the tax credits. Moreover, there are also provincial tax credits available for hiring co-op students.
Consider the example of Ontario, in which employers that hire co-op students are offered what is known as the Cooperative Education Tax Credit (CTEC).
This credit, a maximum of $3000, is offered to businesses in order to compensate for hiring students from post-secondary co-op programs for a work placement of a minimum of ten weeks and a maximum of four months. To claim this tax credit as a corporation, this corporation must simply fill out a Schedule T2SCH550 form and file it with their T2 Corporation Income Tax Return. If an unincorporated business, the credit may be claimed on Form ON479 as a part of personal income.
Businesses have the opportunity to scout future employees.
The majority of employers who hire co-op students love the enthusiasm and great attitude they see in their students. In addition, for many businesses, the hiring of co-op students is an opportunity to inject new skill sets into their organization and often use co-op programs as an efficient means to develop talented employees for the future.
In hiring co-op students, businesses have the opportunity to scout future employees and assess their abilities without making any commitments.
May be a good time to revisit your old campus and see what co-op programs are out there!