What is a payroll rebate?
A payroll rebate is an incentive that can be used to attract companies to Nova Scotia and to incent local companies to grow and create jobs here instead of somewhere else.
Why do you have payroll rebates?
They are used to create new jobs in Nova Scotia. They are helpful in competing with other locations around the world that also want to attract companies and create jobs.
How do they work?
When we sign a payroll rebate agreement, the company only receives a rebate payment after it has created the jobs in Nova Scotia and those job numbers have been confirmed. The amount the company receives depends on the amount of money it has spent on payroll for these new jobs. For every dollar a company spends on the new jobs, it receives between five and ten cents back.
How do you know how many jobs a company created?
When a company submits a rebate claim, it must send NSBI an audited report that confirms the number of jobs it created that year.
Why do you always say the maximum number of jobs?
Companies forecast their potential job creation growth and we incent up to an agreed maximum. We must tell the public how much we could spend in total if the agreed maximum was met, so we say what that maximum number of jobs could be.
Why do companies not always reach the maximum number of jobs?
Some companies reach the maximum job numbers and some do not. There are many business and economic factors that affect a company and its plans along the way.
Can you tell us how many jobs each company has created?
Job creation is a great story, and one we would always like to share. However, the business environment is competitive and we must respect client confidentiality. We always work closely with our clients and monitor their progress.
Why does NSBI say that the province makes money when you are paying a company to create jobs?
Payroll rebates are designed in a way that the tax revenue generated for the province and taxpayers by the new jobs in Nova Scotia is always more than the amount spent on rebates.
From 2007-2012, for every dollar spent by the province through NSBI on payroll rebates, the province and taxpayers received a return of $1.54, or 54 per cent.
Are there any other benefits to payroll rebates?
Yes. Payroll rebates not only help create new jobs in Nova Scotia, they help create new jobs for our university and college graduates so they can stay and work here instead of going elsewhere to find jobs. And when a company from elsewhere chooses Nova Scotia as a place to invest and create jobs they bring and transfer new skills, knowledge and training to our workforce.