Fact sheet

Archived

This page has been archived on the Web.

Federal Youth Hires Program

The Federal Youth Hires Program is an initiative designed to help young people enter the workforce by providing employers Employment Insurance (EI) premium relief for hiring youth aged 18 to 24 in 1999 and 2000. Under the program, the total EI premiums employers will pay for youths in 1999 and 2000 will be no more than they currently pay in 1998. If employer EI premiums increase over this base amount, employers will get relief.

Are all employers eligible to participate in the program?

Yes. All current employers, as well as any new employers in 1998, 1999 and 2000, are eligible to participate in the program.

How will the rebate amount be calculated?

The total EI premium relief is based on the increase in the insurable earnings of youths in 1999 or 2000 compared to the 1998 insurable earnings for this group (known as the base amount), multiplied by 1.4 times the EI premium rate in effect for the refund year.

What does the employer have to do to participate?

In January 2000, Revenue Canada will calculate the 1998 total insurable earnings for employees aged 18 to 24 for each employer, based on information provided in their 1998 T4 and T4F information returns. The Department will also calculate any premium relief to which employers are entitled for 1999 and 2000 when it processes their 1999 and 2000 T4 and T4F information returns.

It is very important that employers ensure the correct social insurance number appears on an employee's T4 or T4F slip. If it does not, these slips will be excluded from premium relief calculations and there could be processing delays.

Employers can benefit from the program as early as 1999 by calculating for themselves the 1998 EI insurable earnings for their employees aged 18 to 24. They can then stop paying their 1999 employer EI premiums for their employees aged 18 to 24, once they have paid the equivalent of the 1998 total for this youth group.

The process for applying for the premium relief has not been finalized. More details about this will be available and communicated at a later date.

How can the employer get the rebate?

Option 1 - The employer applies for the rebate each year when filing the 1999 and 2000 T4 and T4F returns.

Option 2 - In 1999 and 2000, the employer can use the expected rebate by ceasing to pay employer EI premiums for the youths once they reach their 1998 base amount. To get the benefit during 1999, employers have to calculate the 1998 EI insurable earnings for their employees aged 18 to 24. Employers have to then formally apply when filing their T4 or T4F return for the applicable year.

The process for applying for the premium relief under either option has not been finalized. More details about this will be available and communicated at a later date.

How will new employers in 1999 and 2000 be informed about the Federal Youth Hires Program?

Starting in February 1999, all new employers will receive a pamphlet about the program with their new employers kit.

How can employers get more information?

Information regarding the program is included in the "What's New" section of the 1998-99 Employer's Guide to Payroll Deductions - Basic Information. In addition, a pamphlet on the program will be mailed to all employers in February 1999, and will be available at all tax services offices and tax centres at the end of February 1999.

Copies of the guide are available at Revenue Canada offices, and on the Internet at: www.rc.gc.ca (Frequently Requested Publications). The addresses and telephone numbers of the offices are listed under "Revenue Canada" in the Government of Canada section of the telephone book.

Date modified:

1998-11-01