To further stimulate employment, British Columbia (BC) has increased its wage subsidy program.
Employers can now apply for a one-time tax credit.
Compared to the third quarter of 2020, if you hired more employees or paid higher wages in the fourth quarter of 2020, you may be eligible to claim this benefit.
BC Increased Employment Incentive Tax Credit
Tax Credit Amount
The tax credit amount is 15% of the increase in total eligible remuneration paid to all eligible employees during the qualifying period (Q4 2020) compared to the baseline period (Q3 2020).
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Baseline Period: July 1, 2020 – September 30, 2020
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Qualifying Period: October 1, 2020 – December 31, 2020
Credit Details
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There is no maximum limit on the credit amount.
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However, credits below $10 will not be issued.
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The credit will not be reduced if you receive other government subsidies.
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The credit can be applied to offset outstanding provincial tax debts, such as Employer Health Tax (EHT) or Provincial Sales Tax (PST).
Eligibility Criteria
Employers (including those not required to pay Employer Health Tax) are eligible if:
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The total remuneration paid during the qualifying period increased compared to the baseline period.
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The employer had a permanent establishment in BC during the qualifying period (businesses established after September 30, 2020, may still qualify).
Eligible employers may include:
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Individuals
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Corporations
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Partnerships
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Trusts
Public institutions and registered political parties are not eligible for this tax credit.
How to Calculate the Tax Credit
Formula:
(Total eligible remuneration during the qualifying period − Total eligible remuneration during the baseline period) × 15%
Definition of Eligible Remuneration
Eligible remuneration refers to the wages paid by the employer to employees during either the baseline or qualifying periods.
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The maximum eligible remuneration per employee is $1,129.33 per week.
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Eligible wages must be paid to employees on or before June 30, 2021, or before the employer applies for the credit, whichever is earlier.
For detailed calculation methods and examples, visit:
👉 BC Government — Calculation Examples
Application Requirements
Employer and Employee Information:
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Federal Business Number (BN) — the first 9 digits of your GST/HST or CRA payroll account
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Company address and mailing address
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Business code and incorporation date
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NAICS (North American Industry Classification System) code
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Employee details (SIN and full name)
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Total and eligible remuneration in BC during the baseline period (listed by employee)
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Total and eligible remuneration in BC during the qualifying period (listed by employee)
Bank Information:
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Branch (transit) number
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Institution name (or number)
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Account number
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Account holder’s name
Supporting Documents:
Available for download at:
👉 BC Government — Increased Employment Incentive
How to Apply
Option 1: Apply online through eTaxBC Logon:
👉 https://www.etax.gov.bc.ca/btp/eservices/_/
Option 2: If you don’t have an eTaxBC Logon, apply through this page:
👉 https://www.etax.gov.bc.ca/btp/IEI/_/
Application Deadline
🗓️ December 31, 2021
