On September 11, 2014 Ottawa announced that they will be cutting Employment Insurance Premiums for small businesses for the next two years. Over the next few years of doing so, they will be saving employers more that $500 million dollars. The Small Business Job Credit will reduce EI premiums to $1.60 for every $100 earned in 2015, down from the current rate of $1.88
It is expected to reduce EI payroll taxes by almost 15%. Finance Minister Joe Oliver said “When you reduce payment by half a billion dollars, you’ll have an impact. That’s what we’re looking for. We believe it will encourage growth and employment opportunities.” He says that the move was necessary to ensure that the Canadian economy will continue to grow.
So here is how it will work for you to qualify:
Your business must pay equal to or less than $15,000 in Employment Insurance premiums next year and in 2016. It is estimated that about 780,000 firms in Canada will qualify.
The Minister has also dismissed the idea that the government is implementing this change because they are worried about job growth diminishing.
“It’s a sign of confidence that we will continue to grow, and continue down the right path.”
Source: The Daily Courier, September 12, 2014 (Summary)