2018-01-31 00:00:00Accounting NewsEnglishLearn how high-quality workmanship and money-saving tax credits can be had by hiring tradespeople with Red Seal Program endorsements to...https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2018/02/Small-business-skilled-worker-discusses-red-seal-program-with-accountant.jpgWhat Is the Red Seal Program and What Does it Mean to Small Businesses?

What Is the Red Seal Program and What Does it Mean to Small Businesses?

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Setting the standard for trades in Canada, the Red Seal Program defines excellence and endorses tradespeople who measure up to the program’s high standards. As of 2017, 56 trades are covered by the Red Seal Program endorsement. Steered by the Canadian Council of Directors of Apprenticeship, the program sets standards, assesses skills, and grants designations to qualified tradespeople across Canada. Under the national umbrella, Red Seal testing is done at the provincial level to standardize labour force processes and maintain a high level of workmanship in skilled trades. A contractor with Red Seal certification benefits from national recognition and gains a competitive edge.

The program is designed to benefit both workers and businesses. The endorsement gives labourers credibility, and it allows businesses to choose contractors with confidence. If you’re looking for a floor-covering expert to lay new carpeting in a waiting room or a carpenter to build cabinets in a satellite office, the skill level of Red Seal workers is well-known, and you can expect to have the job done right in your accounting office.

There are also financial incentives for tradespeople, apprentices, and businesses. Your accounting clients, including Red Seal designated plumbing contractors, landscapers, and other skilled trades businesses, can sweeten their income tax returns with deductible tax credits. Employers can claim up to $2,000 per year per apprentice with the Apprenticeship Job Creation Tax Credit. By following the regulations for eligibility, businesses can claim federal and provincial credits that ultimately reduce labour costs. Credits and initiatives may vary by province, but in keeping with the mission of the Red Seal Program, the standard of work is consistent across the country.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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