Small Business Job Credit
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On September 11, 2014 Federal Finance Minister Joe Oliver announced the creation of the Small Business Job Credit. This credit will apply to Employment Insurance (EI) premiums paid by small businesses in 2015 and 2016 and will result in a 15% net reduction in EI over those years.
The credit is effective for two years, commencing in 2015 and is available to employers paying under $15,000/year in EI premiums.
Employers do not have to apply for this credit. Canada Revenue Agency will automatically determine eligibility and calculate the amount of the credit. The credit will firstly be applied to any outstanding debt with the balance being refunded to the small business.
There is a further EI rate reduction planned for 2017.
For more information and insights about Canadian tax services, contact the experienced team of accounting professionals at Hogg, Shain & Scheck.