How New Brunswick Small Businesses Can Benefit from the Workforce Expansion Program

Hiring employees is a significant expense for small businesses, often accounting for a substantial portion of operational costs. To alleviate this financial burden and promote employment, the Government of New Brunswick offers the Workforce Expansion Program (WEP). This program provides wage subsidies to employers, encouraging the hiring of unemployed individuals and fostering long-term, sustainable employment. Despite its advantages, many business owners remain unaware of their eligibility for financial support when expanding their workforce.

Understanding the Workforce Expansion Program

The Workforce Expansion Program is designed to bridge the gap between unemployed New Brunswickers and employers seeking to fill positions. By offering wage incentives, the program aims to:

  • Promote Skill Development: Enable unemployed individuals to gain valuable work experience and skills.
  • Encourage Sustainable Employment: Foster long-term employment relationships between employers and employees.
  • Support Priority Groups: Focus on integrating individuals from select groups into the workforce.

Key Components of the Program

1. Employer Wage Incentive:

  • Objective: To encourage employers to hire unemployed individuals by providing temporary wage subsidies.
  • Eligibility Criteria:
    • For Employers:
      • Must be a private sector company, non-profit organization, or First Nation.
      • Must be prepared to provide necessary training to the new employee.
    • For Employees:
      • Must be unemployed and legally entitled to work in Canada.
      • Must be residing in New Brunswick or willing to establish residency.
      • Must not be an immediate family member of the employer.
      • Priority given to Aboriginals, Social Assistance Recipients, Persons with Disabilities, Visible Minorities, Newcomers, Older Workers, and recent Post-secondary Graduates.
  • Wage Subsidy Details:
    • The subsidy rate and duration depend on the type of employment created and the individual hired.
    • Employers must receive departmental approval before hiring, and positions should be filled within 30 days of approval.

2. Self-Employment Benefit:

  • Objective: Assist unemployed individuals in creating their own jobs by starting a new business.
  • Support Provided:
    • Financial assistance during the business’s initial development phase.
    • Coaching and ongoing technical advice tailored to individual needs.

Eligibility and Application Process

For Employers:

  • Eligibility:
    • Private sector companies, non-profit organizations, and First Nations are eligible.
    • Must be prepared to provide training to the new employee.
  • Application Steps:
    1. Identify a Suitable Candidate: Ensure the individual meets the employee eligibility criteria.
    2. Submit an Application: Complete the application form available through the Department of Post-Secondary Education, Training and Labour.
    3. Await Approval: Do not proceed with hiring until receiving departmental approval.
    4. Hire and Train: Once approved, hire the individual and provide the necessary training.

For Individuals Seeking Self-Employment:

  • Eligibility:
    • Unemployed individuals legally entitled to work in Canada.
    • Residing in New Brunswick or willing to establish residency.
  • Application Steps:
    1. Develop a Business Plan: Outline the proposed business idea and development strategy.
    2. Submit an Application: Apply through the Self-Employment Benefit component of the Workforce Expansion Program.
    3. Participate in Coaching: Engage in coaching sessions tailored to individual needs.
    4. Launch the Business: Utilize the financial assistance and advice provided to start the new business.

Maximizing Funding Opportunities

To fully leverage the benefits of the Workforce Expansion Program, consider the following strategies:

  1. Align Job Roles with Program Objectives:
    • Design positions that provide meaningful skill development opportunities for employees.
    • Focus on creating roles that can lead to long-term employment beyond the subsidy period.
  2. Engage with Priority Groups:
    • Actively recruit individuals from the program’s priority groups to enhance eligibility and contribute to community development.
  3. Maintain Compliance with Program Requirements:
    • Ensure all hiring and training processes adhere to the guidelines set by the Department of Post-Secondary Education, Training and Labour.
    • Keep thorough records of employment and training activities for reporting purposes.

Payroll Compliance and Tax Implications: Insights from CPAs

Participating in wage subsidy programs like the Workforce Expansion Program can have specific payroll and tax implications. It’s essential to manage these aspects carefully to maintain compliance and optimize financial benefits.

Payroll Compliance:

  • Accurate Wage Calculations: Ensure that wage subsidies are correctly applied to employee earnings.
  • Timely Reporting: Submit all required payroll reports to government agencies promptly.
  • Record-Keeping: Maintain detailed records of wage payments and subsidies received.

Tax Implications:

  • Taxable Income: Understand how wage subsidies affect the taxable income of the business.
  • Deductions: Determine which expenses remain deductible when wage subsidies are applied.
  • Consultation: Engage with a Certified Professional Accountant (CPA) to navigate the complexities of tax regulations related to wage subsidies.

Conclusion

The Workforce Expansion Program offers valuable opportunities for New Brunswick small businesses to reduce hiring costs and contribute to workforce development. By understanding the program’s components, eligibility criteria, and application processes, employers can effectively utilize these resources to expand their teams and support economic growth within the province.