Hiring students and young workers often stretches a small business budget. Programs like FIRST Jobs and other youth wage subsidy programs help cover some of these costs. However, only certain expenses qualify. Understanding which employer costs are eligible can help you avoid problems with reimbursement.
Across Canada, youth wage subsidies usually cover part of the wages and mandatory payroll costs. In Alberta’s tech sector, FIRST Jobs is a popular program that lowers the real cost of hiring post-secondary students.
Youth wage subsidy programs aim to reduce direct employment costs. They do not cover every expense related to hiring. Here’s how it works with FIRST Jobs and similar programs.
FIRST Jobs is managed by Technology Alberta. It supports Alberta-based tech small and medium-sized businesses that hire post-secondary students for paid work terms.
The program guidelines list these eligible employer costs:
FIRST Jobs pays the wage subsidy to the employer, not the student. The program provides the subsidy after the student is hired and the job details are confirmed.
Costs not eligible under FIRST Jobs:
The subsidy amount can change with each intake. FIRST Jobs usually reimburses part of the student’s wages, not the full cost. Employers must pay the rest of the wage and all other non-eligible expenses.
If you want to compare youth wage subsidy programs by province, industry, or worker type, GrantHub’s eligibility matcher can help.
Many youth wage subsidy programs in Canada follow similar rules about eligible costs. They may have different funders, but most focus on wages and required payroll costs.
The Youth Employment and Skills Program (YESP) supports employers in agriculture and agri-food.
Eligible employer costs include:
Wage subsidies have a set maximum and count as taxable business income.
For STEM and environmental jobs, Science Horizons offers:
Eligible costs focus on wages. Overhead, equipment, and general business expenses are not covered.
This program provides:
Employers must sign a funding agreement before hiring to claim eligible costs.
Applying for youth wage subsidy programs takes planning and attention to detail. Here are the main steps:
Check the eligibility criteria
Review program guidelines to confirm your business and the position qualify.
Gather required documents
Prepare details about your business, the job description, and payroll information.
Submit your application before hiring
Most programs require approval before the youth starts work.
Track payroll and employment records
Keep pay stubs, T4s, and proof of CPP/EI/WCB payments. These are often needed for reimbursement.
Submit claims on time
Follow program deadlines for submitting claims and supporting documents.
If you need help finding the right program, GrantHub lists hundreds of active wage subsidy and youth employment programs across Canada.
Including ineligible expenses in your budget
Programs do not reimburse equipment, onboarding time, or office overhead.
Hiring before approval
Many wage subsidies, including Get Youth Working!, require approval before the youth starts work.
Assuming subsidies cover 100% of wages
Most programs require employers to pay a portion of wages out of pocket.
Missing payroll documentation
Pay stubs, T4s, and proof of CPP/EI/WCB payments are often required for reimbursement.
Q: Are employer payroll taxes covered by FIRST Jobs?
Yes. Mandatory employer contributions like CPP, EI, and WCB are generally considered eligible employment costs under wage subsidy programs.
Q: Can I stack FIRST Jobs with other wage subsidies?
Sometimes. Stacking may be allowed, but total funding cannot be more than what you pay to employ the student.
Q: Are wage subsidies considered taxable income?
Yes. Wage subsidies are usually treated as taxable business income and should be reported.
Q: Do benefits like health plans or vacation pay qualify?
Vacation pay required by employment standards is usually allowed. Extended health benefits and bonuses are not.
Q: What age qualifies as “youth” for most programs?
Most federal youth programs define youth as ages 15–30. Some provincial programs use different age ranges.
FIRST Jobs and youth wage subsidy programs can lower student hiring costs if you budget carefully. Focus on wages and mandatory payroll expenses, and plan to cover other costs yourself. To find out which youth wage subsidies your business may qualify for, GrantHub can help you compare programs by location, industry, and employee type.
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