The BC Increased Employment Incentive is a one-time refundable tax credit for BC employers who increased their eligible remuneration paid in October to December 2020 (“qualifying period”) compared to eligible remuneration paid from July to September 2020 (“base period”).

BC Increased Employment: How It Works

The tax credit is 15% of the amount that total eligible remuneration for eligible employees in the “qualifying period” (Oct-Dec 2020) exceeds total eligible remuneration for all eligible employees in the “base period” (July – Sep 2020).

To qualify as an eligible employee, the employee must report to work in BC. Also, the employee cannot deal at non-arm’s length with the employer unless that the non-arm’s length employee was an employee at the beginning of the “base period”.

For each eligible employee, the eligible remuneration cannot exceed the maximum amount of $1,129.33 per week.

Employers will have until December 31, 2021, to apply. Applications must be made through eTaxBC at https://www.etax.gov.bc.ca/btp/eservices

Calculation of the BC Increased Employment Incentive Example

For more information, please click here.

If you have any questions, please contact your Avisar professional.

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