This employment tax credit was intended to encourage new jobs in B.C. and increase payroll for employees
Clients with operations in British Columbia can start applying for the B.C. Increased Employment Incentive starting in March 2021. This credit provides a refundable tax credit to certain employers who increased their employment of low- to middle-income workers in British Columbia, specifically in the third to the fourth quarter of 2020.
The province announced this new measure in the B.C. Economic Recovery Plan on September 17, 2020.
The B.C. Increased Employment Incentive provides a refundable tax credit that equals 15% of the amount by which the total remuneration paid to eligible employees in the quarter ended December 31, 2020 (up to $1,129.33 per eligible employee per week) exceeds the total B.C. remuneration paid to eligible employees for the quarter ended September 30, 2020 (up to $1,129.33 per eligible employee per week).
The credit is available to all employers in British Columbia, other than public institutions. For employers required to pay the Employer Health Tax (EHT), the province will first apply this credit to any outstanding EHT amount, with the excess available as a refund.
The province adds that it will not reduce tax credits for eligible businesses that receive relief from both the B.C. Increased Employment Incentive and the Canada Emergency Wage Subsidy.
For more information, contact your KPMG advisor.
Information is current to February 22, 2021. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500
© 2021 KPMG LLP, an Ontario limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.