Payroll Rebate Approved
Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of a payroll rebate for professional services firm Ernst and Young LLP (EY Canada).
EY Canada is member of the global EY organization, a leading provider of professional and consulting services. EY has the potential to create up to a maximum of 150 jobs with the opening in Halifax of its first Canadian-based Global Centre of Excellence for Robotic Process Automation Service.
Based on the maximum growth forecast of the five-year payroll rebate agreement, NSBI estimates the company would spend $34,650,000 in salaries. It is also estimated the new employees would contribute provincial tax revenues of $4,065,000 through their income and consumption taxes. As a result, EY would earn a rebate of up to $2,488,500 over five years. The company would be eligible for a smaller rebate if it creates fewer than 150 new 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 of 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 Fund
Information on NSBI transactions can be found at http://www.novascotiabusiness.com/fundingdisclosures.
Information on EY can be found at http://www.ey.com/ca.