Employer Support – The Registration Process
EMPLOYER SUPPORT – THE REGISTRATION PROCESS
Under the Youth Entrepreneurship Pathway and Job Creation Program, SCAN will provide employer support that includes:
Sourcing and Applying for Funds
Government funding for the program takes different forms.
a. Where there exists the option of the Government paying 100% of the salary (minimum wage), the Employer will only pay the additional wage above the minimum wage and Mandatory Employment Related Costs (MERCs) (if applicable).
b. Where there exists the option of the Government paying less than 100% of the minimum wage, Employers will pay the remaining percentage and Mandatory Employer Related Costs (MERCs) (if applicable). In such cases, governments may pay 50 – 80% of the youth’s salary.
Mandatory Employment Related Costs are the cost employers must pay based on federal and provincial laws and the Employment Insurance (EI) and Canada Pension Plan (CPP). MERCs are calculated by multiplying their salary by 0.0162 and multiplying the result by 1.4.
For example, if employers pay $15 an hour to youth, and the Government is providing 75% of the funding, the cost to the Employer will be:
(0.25 * 15) + (15 * 0.0162) * (1.4) = $4.10 per hour.
Employers will pay a total of CAD $1500 to access the program. The breakdown is as follows: