Definitions for the B.C. increased employment incentive
Defined terms commonly used for the B.C. increased employment incentive.
Last updated: March 31, 2021
On this page:
- Associated employer
- Eligible employee
- Permanent establishment
- Public institutions
- Report for work in B.C.
- Total B.C. remuneration
An associated employer for the increased employment incentive has the same definition as an associated employer for the employer health tax.
For the purposes of the increased employment incentive, charitable or non-profit employers are subject to the association rules.
See associated employers under the employer health tax for more information.
An employee is an eligible employee of an employer when the employee reports for work in B.C. during the base period or the qualifying period.
An eligible employee does not include an employee who deals with their employer at non-arm's length (e.g. an employer hiring their spouse) unless that person was an employee at the beginning of the base period.
A permanent establishment for the increased employment incentive has the same definition as a permanent establishment for the employer health tax. See permanent establishment under the employer health tax for more information.
Public institutions are defined under section 125.7(1) of the Income Tax Act (Canada) and include:
- Schools, school boards, hospitals, health authorities, public universities or colleges
- Organizations described in section 149(1)(a) to (d.6) of the Income Tax Act (Canada)
Public institutions don’t include Indigenous businesses. For more information on Indigenous businesses, see Indigenous businesses as described for the Canada Emergency Wage Subsidy (CEWS).
Remuneration defined for the increased employment incentive is different from remuneration defined for the employer health tax.
Remuneration for the increased employment incentive includes payments, benefits or allowances in respect of the base period or the qualifying period that are:
- Paid to an eligible employee
- Required to be included in the income of the employee under section 5 or 6 of the Income Tax Act (Canada)
- Not listed under exclusions below
The remuneration must be paid to an eligible employee on or before June 30, 2021 or the day you apply for the increased employment incentive, whichever is earlier.
The terms below are similar to their definitions under the employer health tax.
When you calculate your remuneration, include the following:
- Salaries and wages
- Bonuses, commissions and other similar payments
- Advances of salaries and wages
- Vacation pay
- Gratuities or tips paid through an employer
- Other taxable allowances and benefits paid to or on behalf of an employee
- Directors’ fees
- Amounts paid by an employer to top up benefits (e.g. maternity or paternity leave)
- Employer-paid contributions to an employee’s Registered Retirement Savings Plan (RRSP)
- Employer-paid group life insurance premiums
- Employer-paid contributions to employee trusts and employee profit sharing plans
When you calculate your remuneration, exclude the following:
- Employer-paid contributions or premiums to
- Registered pension plan
- Private health services plan
- Supplementary unemployment benefit plan
- Deferred profit sharing plan
- Retirement compensation arrangement
- Pensions, annuities or superannuation benefits paid by employers to a retired employee
- Retiring allowances and severances
- Stock option benefits
- wages in lieu of termination notice
- Death benefits
- Dividend income
- Contributions by an employer to a plan or trust if the value of the employer’s contribution has already been included as remuneration
Report for work in B.C. means employees either:
- Work in person at their employer’s B.C. permanent establishment,
- Are physically present in B.C. to perform their duties in B.C. and are paid from or through their employer’s B.C. permanent establishment, or
- Are on leave while being paid from or though their employer's B.C. permanent establishment and meet one of the first two requirements above immediately before going on leave
B.C. remuneration defined for the increased employment incentive is not B.C. remuneration defined for the employer health tax.
An employer's total B.C. remuneration means the sum of all remuneration paid by an employer to or on behalf of all eligible employees in respect of the base period or the qualifying period. If the eligible 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.