Employers in BC that rehired employees, hired new employees or paid more in compensation to existing employees during the last quarter of 2020 may be eligible for the recently introduced increased employment incentive.
The increased employment incentive is a one-time refundable tax credit for employers who increased their payroll between October 1, 2020 to December 31, 2020. The credit amounts to 15% of the difference between total eligible remuneration paid to eligible employees during the qualifying period (October 1, 2020 to December 31, 2020) and total eligible remuneration paid to eligible employees during the base period (July 1 to September 30, 2020). The credit:
- must be at least $10 to be paid and does not have a maximum.
- will not be reduced by any provincial or federal support received, such as the B.C. training tax credits or the federal Canada Emergency Wage Subsidy (CEWS).
- will offset any outstanding provincial tax debts, such as the employer health tax or the provincial sales tax.
All employers (except for public institutions and registered political parties) qualify as long as they:
- paid more in eligible remuneration in the qualifying period compared to the base period
- have a permanent establishment (fixed place of business) in BC
To be included in the calculation for this tax credit, remuneration must have been paid to eligible employees either on or before June 30, 2021 or the date of application for the increased employment incentive, whichever is earlier. The maximum amount of eligible remuneration for each eligible employee is $1,129.33 per week.
Applications are open until December 31, 2021. Visit this Government of BC webpage for complete eligibility and application details and to submit your application.