B.C. Increased Employment Incentive
As part of B.C.’s Economic Recovery Plan, the B.C. Increased Employment Incentive is a refundable tax credit for employers which encourages the creation of new jobs for B.C. workers or increases in payroll for existing low- or medium-income employees.
The tax credit is calculated at 15% of the amount that the employer’s qualifying B.C. remuneration exceeds the employer’s base B.C. remuneration.
Last updated: September 17, 2020
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All private sector B.C. employers, including most charities and non-profits, who increase their B.C. remuneration by creating new jobs or increasing the pay of their existing low- or medium-income employees over the last quarter (October to December) of 2020 are eligible.
Public institutions are not eligible for the tax credit, and include:
- Schools, school boards, public universities and colleges
- Health authorities
- Certain other government entities
Charities and non-profit organizations that are not public institutions may be eligible for the B.C. Increased Employment Incentive.
The qualifying B.C. remuneration is the total B.C. remuneration paid to eligible employees for the quarter ending December 31, 2020, with a maximum weekly B.C. remuneration for each eligible employee of $1,129.33. Partial weeks are prorated.
Base B.C. Remuneration
The base B.C. remuneration is the total B.C. remuneration paid to eligible employees for the quarter ending September 30, 2020, with a maximum weekly B.C. remuneration for each eligible employee of $1,129.33. Partial weeks are prorated.
For further information, please refer to the B.C. Increased Employment Incentive technical backgrounder.
Canada Emergency Wage Subsidy
If you qualify for the Canada Emergency Wage Subsidy as well as the B.C. Increased Employment Incentive, you may receive assistance from both programs. Your tax credit will not be reduced if you also receive a subsidy from the federal program.
You will be able to apply online starting in March 2021.
More information about the application process will be added here as it becomes available.
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