HOLLAND LANDING, ONTARIO — The Honourable Peter Van Loan, Leader of the Government in the House of Commons and Member of Parliament for York–Simcoe, welcomes the introduction of the new Small Business Job Credit, as part of the Harper Government’s work to create jobs, growth, and long-term prosperity. It is expected that this credit will save small businesses more than $550 million over the next two years.
“Small businesses play an important role in our local economies here in York-Simcoe. That is why our Conservative government has taken action through our new Small Business Job Credit, which will strengthen and enable them to grow and generate jobs within our local communities.” Van Loan said.
The Small Business Job Credit will effectively lower 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. 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%.
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.