On March 26, 2026, the federal government announced the passing of Bill C-15, which introduced a temporary five-year refundable tax credit for eligible PSWs working for eligible health care establishments for the 2026 to 2032 taxation years equal to 5% of eligible earnings, with a credit cap of $1,100 per year.
More details were introduced in the federal budget and published on the Late Breaking Payroll News on November 4, 2025.
The Institute is in communication with the CRA on how eligible earnings paid to PSWs will need to be reported on the 2026 T4 slip.
Employers should:
· Review eligibility criteria for both workers and establishments;
· Ensure payroll systems are correctly tracking eligible earnings;
· Look for NPI updates on how to report eligible earnings on the T4 slip; and
· Communicate this new benefit to PSW staff.