Small Business Job Credit is expected to save businesses more than $550 million over the next two years.
The Small Business Job Credit, announced today by Minister of Finance Joe Oliver, will lower eligible small businesses’ Employment Insurance (EI) premiums from the current legislated rate of $1.88 to $1.60 per $100 of insurable earnings in 2015 and 2016.
This represents a real savings for independent retailers. Any firm that pays employer EI premiums equal to or less than $15,000 in those years will be eligible for the credit.
Almost 90% of all EI premium-paying businesses in Canada will receive the credit, reducing their EI payroll taxes by nearly 15%.
Independent retailers are not required to take any action to enjoy the savings. The Canada Revenue Agency will automatically calculate the credit on a business’ return, ensuring no new paper burden will be imposed on business owners.
In addition, all employers and employees will benefit from a substantial reduction in the EI premium rate in 2017 when the new seven-year break-even rate-setting mechanism takes effect. This will ensure that EI premiums are no higher than needed to pay for the EI program over time.
RCC has been a strong voice to lower costs for Canadian retailers and will continue to fight to reduce costs associated with tariffs, credit card interchange fees and payroll costs. Today’s announcement is a real win for members.
For more information visit the Small Business Job Credit website.
If you have any questions or concerns, please don’t hesitate to contact: Mark Startup, Vice-Presdient, MySTORE at: [email protected] or 604-730-5252/1-800-663-5135 ext. 307.