Examples for the B.C. Increased Employment Incentive

Last updated: January 1, 2022

The B.C. Increased Employment Incentive was a one-time refundable tax credit for employers. The deadline to apply was December 31, 2021. Applications are no longer being accepted.

We'll continue reviewing and processing all applications received before January 1, 2022.

Below are some examples on how the Increased Employment Incentive was calculated based on the following scenarios:

For all examples, we refer to total B.C. remuneration.

Total B.C. remuneration means the sum of all remuneration paid by an employer to or on behalf of an eligible employee in respect of the base period or the qualifying period. If the employee did not report for work in B.C. at any time during the base period or the qualifying period, do not include any amount of remuneration that was paid to that employee in respect of the time that the employee did not report to work in B.C.


Example 1: Hiring a new eligible employee in the qualifying period

An employer hired an eligible employee at $1,200 per week starting October 5, 2020. The employer also has 5 existing eligible employees, each earning $1,000 per week in both the base period and the qualifying period.

Their pay period for a work week is the 7-day period of Sunday to Saturday.

The employer completed the employee summary table below. To find out how the amounts are calculated, select the linked text.

Employee summary table for example 1

Employee

Total B.C. remuneration for base period

Eligible remuneration for base period

Total B.C. remuneration for qualifying period

Eligible remuneration for qualifying period

New employee

N/A

N/A

$15,360

$14,359

Employee 1

$13,200

$13,200

$13,200

$13,200

Employee 2

$13,200

$13,200

$13,200

$13,200

Employee 3

$13,200

$13,200

$13,200

$13,200

Employee 4

$13,200

$13,200

$13,200

$13,200

Employee 5

$13,200

$13,200

$13,200

$13,200

Total

$66,000

$66,000

81,360

$80,359

Total B.C. Increased Employment Incentive received = $2,154

To calculate the eligible remuneration for the new employee for the qualifying period, take the lesser of:

  • The maximum eligible remuneration
  • The total B.C. remuneration

Maximum eligible remuneration

Since the new employee began work on October 5, there is no partial work week in October. Therefore, the employer only needs to prorate the $1,129.33 for the last partial work week in December, which is 5 out of 7 days.

To calculate the maximum eligible remuneration:

  • (Eligible remuneration for the 12 full work weeks) + (eligible remuneration for the last partial week of December 2020)
  • ($1,129.33 x 12 full weeks) + ($1,129.33 x 5 days/7 days) = $14,359

Total B.C. remuneration (in table)

Total B.C. remuneration is based on the weekly amount of $1,200. Because the employee’s remuneration didn’t fluctuate and they consistently work Monday to Friday, the employer is able to calculate the employee’s total B.C. remuneration based on a 5-day work week.

Since the new employee began work on October 5, the employer also calculates the total B.C. remuneration for the last partial work week in December, which is only 4 out of 5 days.

To calculate the total B.C. remuneration:

  • (Remuneration for the 12 full work weeks) + (remuneration for the last partial work week of December 2020)
  • ($1,200 x 12 full work weeks) + ($1,200 x 4 days/5 days) = $15,360

Eligible remuneration (in table)

The maximum eligible remuneration is less than the total B.C. remuneration. Therefore the eligible remuneration for the new employee for the qualifying period is $14,359.

 

Example 1: Calculating eligible remuneration for each existing employee for the base period

To calculate the eligible remuneration for each existing employee for the base period, take the lesser of:

  • The maximum eligible remuneration
  • The total B.C. remuneration

Maximum eligible remuneration

Since each existing employee worked from July 1 to September 30, the employer needs to prorate the $1,129.33 for:

  • The first partial week in July 2020, which is 4 out of 7 days, and
  • The last partial week in September 2020, which is 4 out of 7 days

To calculate the maximum eligible remuneration:

  • (Eligible remuneration for the 12 full weeks) + (eligible remuneration for the first partial week of July 2020) + (eligible remuneration for the last partial week of September 2020)
  • ($1,129.33 x 12 full weeks) + ($1,129.33 x 4 days/7 days) + ($1,129.33 x 4 days/7 days) = $14,843

Total B.C. remuneration (in table)

Total B.C. remuneration is based on the weekly amount of $1,000. Because the employees’ remuneration didn’t fluctuate and they consistently work Monday to Friday, the employer is able to calculate the employees’ total B.C. remuneration based on a 5-day work week.

Since each existing employee worked from July 1 to September 30, the employer also calculates the total B.C. remuneration for:

  • The first partial week of July 2020, which is 3 out of 5 days, and
  • The last partial week of September 2020, which is 3 out of 5 days

To calculate the total B.C. remuneration:

  • (Remuneration for the 12 full work weeks) + (remuneration for the first partial week in July 2020) + (remuneration for the last partial work week in September 2020)
  • ($1,000 x 12 full work weeks) + ($1,000 x 3 days/5 days) + ($1,000 x 3 days/5 days) = $13,200

Eligible remuneration (in table)

The total B.C. remuneration is less than the maximum eligible remuneration. Therefore the eligible remuneration for each existing employee for the base period is $13,200.

 

Example 1: Calculating eligible remuneration for each existing employee for the qualifying period

To calculate the eligible remuneration for each existing employee for the qualifying period, take the lesser of:

  • The maximum eligible remuneration
  • The total B.C. remuneration

Maximum eligible remuneration

Maximum eligible remuneration is based on the weekly maximum of $1,129.33 and is prorated over a 7-day period.  

Since each existing employee worked from October 1 to December 31, the employer needs to prorate the $1,129.33 for:

  • The first partial week of October 2020, which is 3 out of 7 days, and
  • The last partial week of December 2020, which is 5 out of 7 days

To calculate the maximum eligible remuneration:

  • (Eligible remuneration for the 12 full weeks) + (eligible remuneration for the first partial week in October 2020) + (eligible remuneration for the last partial week in December 2020)
  • ($1,129.33 x 12 full weeks) + ($1,129.33 x 3 days/7 days) + ($1,129.33 x 5 days/7 days) = $14,843

Total B.C. remuneration (in table)

Total B.C. remuneration is based on the weekly amount of $1,000. Because the employees’ remuneration didn’t fluctuate and they consistently work Monday to Friday, the employer is able to calculate the employees’ total B.C. remuneration based on a 5-day work week.

Since each existing employee worked from October 1 to December 31, the employer also calculates the total B.C. remuneration for:

  • The first partial week of October 2020, which is 2 out of 5 days, and
  • The last partial week of December 2020, which is 4 out of 5 days

To calculate the total B.C. remuneration:

  • (Remuneration for the 12 full work weeks) + (remuneration for the first partial week of October 2020) + (remuneration for the last partial work week of December 2020)
  • ($1,000 x 12 full work weeks) + ($1,000 x 2 days/5 days) + ($1,000 x 4 days/5 days) = $13,200

Eligible remuneration (in table)

The total B.C. remuneration is less than the maximum eligible remuneration. Therefore the eligible remuneration for each existing employee for the qualifying period is $13,200.

 

Example 1: Calculating B.C. Increased Employment Incentive amount

To calculate the credit amount:

  • (Eligible remuneration for qualifying period - eligible remuneration for base period) x 15%
  • ($80,359 - $66,000) x 15% = $2,154

Therefore the credit amount the employer could receive is $2,154.

 


Example 2: Moving part-time eligible employees to full-time employment

An employer has 5 eligible employees who moved from working 15 hours a week to 40 hours a week starting November 1, 2020.

When each eligible employee worked 15 hours a week, they worked Monday, Wednesday and Friday, 5 hours per day, $375 per week.

When each eligible employee worked 40 hours a week, they worked Monday to Friday, 8 hours per day, $1,000 per week.

The employees are paid $25 per hour. The employer’s pay period is Sunday to Saturday.

The employer completed the employee summary table below. To find out how the amounts are calculated, select the linked text.

Employee summary table for example 2

Employee

Total B.C. remuneration for base period

Eligible remuneration for base period

Total B.C. remuneration for qualifying period

Eligible remuneration for qualifying period

Employee 1

$5,000

$5,000

$10,425

$10,425 

Employee 2

$5,000

$5,000

$10,425

$10,425

Employee 3

$5,000

$5,000

$10,425

$10,425

Employee 4

$5,000

$5,000

$10,425

$10,425

Employee 5

$5,000

$5,000

$10,425

$10,425

Total

$25,000

$25,000

$52,125

$52,125

Total B.C. Increased Employment Incentive received = $4,069

 

Example 2: Calculating eligible remuneration for each employee for the base period

To calculate the eligible remuneration for each employee for the base period, take the lesser of:

  • The maximum eligible remuneration
  • The total B.C. remuneration

Maximum eligible remuneration

As calculated in example 1, the maximum eligible remuneration for the base period is $14,843.

Total B.C. remuneration (in table)

Total B.C. remuneration is based on the weekly amount of $375.

Since each employee worked 3 days per week from July 1 to September 30, the employer also calculates the total B.C. remuneration for:

  • The first partial week of July 2020, which is 10 hours total for July 1 and July 3, and
  • The last partial week of September 2020, which is 10 hours total for September 28 and September 30

To calculate the total B.C. remuneration:

  • (Remuneration for the 12 full work weeks) + (remuneration for the first partial week of July 2020) + (remuneration for the last partial work week of September 2020)
  • ($375 x 12 full work weeks) + ($25 x 10 hours) + ($25 x 10 hours) = $5,000

Eligible remuneration (in table)

The total B.C. remuneration is less than the maximum eligible remuneration. Therefore the eligible remuneration for each existing employee for the base period is $5,000.

 

Example 2: Calculating eligible remuneration for each employee for the qualifying period

To calculate the eligible remuneration for each employee for the qualifying period, take the lesser of:

  • The maximum eligible remuneration
  • The total B.C. remuneration

Maximum eligible remuneration

As calculated in example 1, the maximum eligible remuneration for the qualifying period is $14,843.

Total B.C. remuneration (in table)

Total B.C. remuneration is calculated on:

  • The weekly amount of $375 from October 1 to October 31
  • The weekly amount of $1,000 from November 1 to December 31

The employer also calculates the total B.C. remuneration for:

  • The first partial week of October 2020, which is 5 hours total for October 2, and
  • The last partial week of December 2020, which is 32 hours total for December 28 to December 31

To calculate the total B.C. remuneration:

  • (Remuneration for the 12 full work weeks) + (remuneration for the first partial week of October 2020) + (remuneration for the last partial work week of December 2020)
  • (($375 x 4 work weeks) + ($1,000 x 8 work weeks)) + ($25 x 5 hours) + ($25 x 32 hours) = $10,425

Eligible remuneration (in table)

The total B.C. remuneration is less than the maximum eligible remuneration. Therefore the eligible remuneration for each existing employee for the qualifying period is $10,425.

 

Example 2: Calculating B.C. Increased Employment Incentive amount

To calculate the credit amount:

  • (Eligible remuneration for qualifying period - eligible remuneration for base period) x 15%
  • ($52,125-$25,000) X 15% = $4,069  

Therefore the credit amount the employer will receive is $4,069.

 


Example 3: Hiring or rehiring an eligible employee in August while retaining all employees

An employer with 4 eligible employees work Monday to Friday, each earning $1,000 per week. The employer hires or rehires an additional eligible employee at $1,000 per week starting August 1, 2020. The employer retains all staff throughout the qualifying period.

The employer’s pay period is Sunday to Saturday. The eligible employees work Monday to Friday.

The employer completed the employee summary table below. To find out how the amounts are calculated, select the linked text.

Employee summary table for example 3

Employee

Total B.C. remuneration for base period

Eligible remuneration for base period

Total B.C. remuneration for qualifying period

Eligible remuneration for qualifying period

Employee 1

$13,200 

$13,200

$13,200

Employee 2

$13,200

$13,200

$13,200

$13,200

Employee 3

$13,200

$13,200

$13,200

$13,200

Employee 4

$13,200

$13,200

$13,200

$13,200

Employee 5 (Hired or rehired August 1)

$8,600

$8,600

$13,200

$13,200

Total

$61,400

$61,400

$66,000

$66,000

Total B.C. Increased Employment Incentive received = $690

 

Example 3: Calculating eligible remuneration for each existing employee for the base period

To calculate the eligible remuneration for each employee for the base period, take the lesser of:

  • The maximum eligible remuneration
  • The total B.C. remuneration

Maximum eligible remuneration

As calculated in example 1, the maximum eligible remuneration for the base period is $14,843.

Total B.C. remuneration (in table)

Total B.C. remuneration is based on the weekly amount of $1,000. Because the employees’ remuneration didn’t fluctuate and they consistently work Monday to Friday, the employer is able to calculate the employees’ total B.C. remuneration based on a 5-day work week.

Since each existing employee worked from July 1 to September 30, the employer also calculates the total B.C. remuneration for:

  • The first partial week of July 2020, which is 3 out of 5 days, and
  • The last partial week of September 2020, which is 3 out of 5 days

To calculate the total B.C. remuneration:

  • (Remuneration for the 12 full work weeks) + (remuneration for the first partial week of July 2020) + (remuneration for the last partial work week of September 2020)
  • ($1,000 x 12 full work weeks) + ($1,000 x 3 days/5 days) + ($1,000 x 3 days/5 days) = $13,200

Eligible remuneration (in table)

The total B.C. remuneration is less than the maximum eligible remuneration. Therefore the eligible remuneration for each existing employee for the base period is $13,200.

 

Example 3: Calculating eligible remuneration for each existing employee for the qualifying period

To calculate the eligible remuneration for each existing employee for the qualifying period, take the lesser of:

  • The maximum eligible remuneration
  • The total B.C. remuneration

Maximum eligible remuneration

As calculated in example 1, the maximum eligible remuneration for the qualifying period is $14,843.

Total B.C. remuneration (in table)

Total B.C. remuneration is based on the weekly amount of $1,000. Because the employees’ remuneration didn’t fluctuate and they consistently work Monday to Friday, the employer is able to calculate the employees’ total B.C. remuneration based on a 5-day work week.

Since each existing employee worked from October 1 to December 31, the employer also calculates the total B.C. remuneration for:

  • The first partial week of October 2020, which is 2 out of 5 days, and
  • The last partial week of December 2020, which is 4 out of 5 days

To calculate the total B.C. remuneration:

  • (Remuneration for the 12 full work weeks) + (remuneration for the first partial week of October 2020) + (remuneration for the last partial work week of December 2020)
  • ($1,000 x 12 full work weeks) + ($1,000 x 2 days/5 days) + ($1,000 x 4 days/5 days) = $13,200

Eligible remuneration (in table)

The total B.C. remuneration is less than the maximum eligible remuneration. Therefore the eligible remuneration for each existing employee for the qualifying period is $13,200.

 

Example 3: Calculating eligible remuneration for the new employee for the base period

To calculate the eligible remuneration for the new employee for the qualifying period, take the lesser of:

  • The maximum eligible remuneration
  • The total B.C. remuneration

Maximum eligible remuneration

Maximum eligible remuneration is based on the weekly maximum of $1,129.33 and is prorated over a 7-day period.  

Since the new employee began work on August 1, the employer only needs to prorate the $1,129.33 for the last partial work week of September 2020, which is 5 out of 7 days.

To calculate the maximum eligible remuneration:

  • (Eligible remuneration for the 8 full work weeks) + (eligible remuneration for the last partial week of September 2020)
  • ($1,129.33 x 8 full weeks) + ($1,129.33 x 4 days/7 days) = $9,680

Total B.C. remuneration (in table)

Total B.C. remuneration is based on the weekly amount of $1,000. Because the employees’ remuneration didn’t fluctuate and they consistently work Monday to Friday, the employer is able to calculate the employees’ total B.C. remuneration based on a 5-day work week.

Since the new employee began work on August 1, the employer also calculates the total B.C. remuneration for the last partial work week of September 2020, which is only 3 out of 5 days.

To calculate the total B.C. remuneration:

  • (Remuneration for the 8 full work weeks) + (remuneration for the last partial work week of September 2020)
  • ($1,000 x 8 full work weeks) + ($1,000 x 3 days/5 days) = $8,600

Eligible remuneration (in table)

The total B.C. remuneration is less than the maximum eligible remuneration. Therefore the eligible remuneration for the new employee for the qualifying period is $8,600.

 

Example 3: Calculating B.C. Increased Employment Incentive amount

To calculate the credit amount:

  • (Eligible remuneration for qualifying period - eligible remuneration for base period) x 15%
  • ($66,000-$61,400) x 15% = $690

Therefore the credit amount the employer will receive is $690.

 


Example 4: Paying eligible employees monthly

An employer pays an eligible employee $4,000 per month based on an annual salary of $48,000.

Starting on October 1, the employer increases the eligible employee’s salary to $4,500 per month.

How to calculate eligible remuneration

To calculate eligible remuneration, the employer must determine whether the weekly total B.C. remuneration for an eligible employee in a 7-day period exceeds the maximum weekly amount of $1,129.33 for the base period and qualifying period.

Weekly total B.C. remuneration for base period

To determine the weekly total B.C. remuneration in the base period, the employer calculates the total B.C. remuneration in a 7-day period for a month with 30 days and a month of 31 days:
 

  • For a month with 30 days:
    • ($4,000/30 days) x 7 days = $933
    • Total B.C. remuneration would be $933 per 7-day period in a 30-day month
       
  • For a month with 31 days:
    • ($4,000/31 days) x 7 days = $903
    • The total B.C. remuneration would be $903 per 7-day period in a 31-day month

As the total B.C. remuneration in a 7-day period for the months with 30 and 31 days is less than the maximum weekly amount of $1,129.33, the employer can include the entire monthly salary in the calculation of eligible remuneration for the base period.

Weekly total B.C. remuneration for qualifying period

The employer then does the same calculations for the qualifying period:
 

  • For a month with 30 days:
    • ($4,500/30 days) x 7 days = $1,050
    • The total B.C. remuneration would be $1,050 per 7-day period in a 30-day month
       
  • For a month with 31 days:
    • ($4,500/31 days) x 7 days = $1,016
    • The total B.C. remuneration would be $1,016 per 7-day period in a 31-day month

As the total B.C. remuneration for a 7-day period for the months with 30 and 21 days is less than the maximum weekly amount of $1,129.33, the employer can include the entire monthly salary in the calculation of eligible remuneration for the qualifying period. 

Maximum eligible remuneration

As calculated in example 1, the maximum eligible remuneration for each of the base period and the qualifying period is $14,843.

Total B.C. remuneration

To calculate the total B.C. remuneration for the base period:

  • $4,000 x 3 months = $12,000

To calculate the total B.C. remuneration for the qualifying period:

  • $4,500 x 3 months = $13,500

Eligible remuneration

As the total B.C remuneration for the base period and the qualifying period is less than the maximum eligible remuneration for the base period and the qualifying period ($14,843), the eligible remuneration for the qualifying period is $13,500 and the eligible remuneration for the base period is $12,000.

Therefore, the credit is calculated as:

  • (Eligible remuneration for qualifying period - eligible remuneration for base period) x 15%
  • ($13,500 – $12,000) x 15% = $225