NSBI Approves Payroll Rebate
Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of a payroll rebate for The Sydney Call Centre Inc.
The Sydney Call Centre Inc. has the potential to create up to 750 jobs under the three-year payroll rebate agreement. Based on the maximum growth forecast of the agreement, NSBI estimates the company could spend $49,500,000 in payroll.
It is also estimated employees in those jobs would contribute provincial tax revenues of $5,053,000 through their income and consumption taxes. As a result, the company would earn a rebate up to $2,475,000 over three years.
The Sydney Call Centre Inc. would be eligible for a smaller rebate if it creates fewer than 750 jobs.
Quick facts:
- payroll rebates are designed in a way that the tax revenue generated for the province from the employment 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 payroll from jobs created in Nova Scotia 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 http://www.novascotiabusiness.com/fundingdisclosures .