EI PREMIUMS DECREASED FOR SMALL BUSINESSES

The Small Business Job Credit was introduced this fall, and will be available for businesses in 2015 and 2016.

This credit is for small businesses in Canada which have annual EI employer premiums that are less than $15,000. If a business’ premiums are below this threshold, its EI rate will drop to 1.60% from a standard rate of 1.88%.

Similar to the current EI hiring credit, the CRA will determine whether a business qualifies for the credit when business files their annual T4 summary.

This credit will replace the EI hiring credit which expired in 2013. Many small businesses will find this credit more beneficial. The maximum credit available through the previous program was $1,000, whereas the new program offers a maximum credit of $2,234. It is anticipated that after 2016, the EI rate for all businesses will be reduced through other measures that will come into effect at that time.