April 16, 2021 BC employers can now apply for the Increased Employment Incentive that was announced in the BC Provincial Government’s Economic Recovery Plan on September 17, 2020.
The Increased Employment Incentive is a one-time tax credit of 15% of the amount by which an employer’s eligible remuneration for all eligible employees in the qualifying period (Oct 1, 2020 – Dec 31, 2020) exceeds the employer’s eligible remuneration for all eligible employees in the base period (Jul 1, 2020 – Sep 30, 2020). Eligible remuneration is defined as remuneration paid by an employer to or on behalf of an eligible employee for the base period or the qualifying period. For each eligible employee, eligible remuneration must not exceed the maximum amount of $1,129.33 per week. To put it in the form of a simple equation that you can use:
Where X = Total eligible remuneration for all eligible employees between Oct 1, 2020 – Dec 31, 2020
Where Y = Total eligible remuneration for all eligible employees between Jul 1, 2020 – Sep 30, 2020
Where Z = The credit amount
Then Z = (X-Y) x 15%
There is no maximum credit amount, but a credit of less than $10 will not be paid.
There is no reduction to this credit as a result of other provincial or federal supports
an employer may have received.
The credit amount will offset any provincial debts outstanding (such as EHT or PST). If there are no outstanding provincial debts employers should receive direct deposits in their bank within 5 days of their application being approved.
The application deadline is December 31, 2021.
Increase in eligible remuneration for qualifying period compared to base period (see above).
Employer had a permanent establishment in BC for the qualifying period (even if this was established after September 30, 2020).
Employers must be individuals, corporations, partnerships or trusts.
If an employer is part of an associated group of employers, only one employer in the group can claim eligible remuneration for a given eligible employee, if that employee is employed by more than one of the associated employers in that group during the base or the qualifying period.
n on the incentive, including how to apply and additional details regarding prorated periods or employees who may not have reported to work during the qualifying period, please click here.
For examples on calculating the credit, please click here.
If you have any questions, or if you would like assistance in preparing your application, please contact our office.
Thank you, The Raincoast Team