Payroll Rebate Amendment Approved
Nova Scotia Business Inc. (NSBI) has approved an amendment to the existing Bank of N.T. Butterfield and Son Limited business development incentive agreement, which was announced in December 2015 in the form of a payroll rebate.
With the amended business incentive agreement, the company is projected to create an additional 50 jobs in the province, for a total of 100 jobs over the six-year agreement. The amendment reflects both the company’s workforce growth plans and the agreed-upon increase in projected average salaries for the new positions. Based on the maximum growth forecast of the six-year amended payroll rebate agreement, NSBI estimates The Bank of N.T. Butterfield and Son Limited would spend about $21 million in salaries.
It is estimated the new employees would contribute provincial tax revenues of about $2.4 million through their income and consumption taxes. As a result, The Bank of N.T. Butterfield and Son Limited is qualified to earn up to $1,674,237 through the payroll rebate over the six-year agreement.
The Bank of N.T. Butterfield and Son Limited would be eligible for a smaller rebate if it creates fewer than 100 jobs.
- in 2015 NSBI announced that The Bank of N.T. Butterfield and Son Limited had been qualified to earn a payroll rebate for up to a maximum of $840,000 over six years, for up to 50 jobs
- payroll rebates are designed in a way that the tax revenue generated for the province by the new jobs in Nova Scotia is always more than the amount spent on the rebate
- payroll rebates are only paid after a business has generated actual payroll for the Nova Scotia economy
- for every dollar a company spends on the new jobs, it receives between five and 10 cents back
- when a company submits an annual rebate claim, it must send NSBI audited information that confirms the number of jobs it created that year
- payroll rebates are paid through the Strategic Investment Funds
Information on NSBI transactions can be found at www.novascotiabusiness.com/fundingdisclosures.