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EMPLOYMENT INSURANCE RATES REDUCED

The 2019 Employment Insurance (EI) Premium rate will be going down in 2018. The rate will be decreasing from $1.66 to $1.62 for every $100 of insurable earnings. This will be the lowest EI premium rate since 1980. The decrease in the effective rate for employers will be slightly greater, as employers pay 1.4 times the amounts paid by employees.

Nonetheless, total premium deductions will actually be increasing in the coming year, due to an increase in Maximum Insurable Earnings, from $51,700 in 2018 to $53,100 in 2019.

As a result, the maximum employee deduction will be increasing slightly to $860, and the maximum employer contribution will be rising to $1,204.

If an employee has net income over $66,375 in 2019, and they have received EI premiums for more that one week in the prior 10 years, they will have to pay back a portion of their EI premiums. This clawback rate will be 30% of the     amount that their net income exceeds $66,375.

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.

Kemp Harvey Group leads “Be the Kidney Initiative”

Employees of Kemp Harvey Group offices across British Columbia will receive an extra helping hand if they choose to become a living organ donor.

Kemp Harvey Group is pioneering as the first employer to participate in the newly-launched “Be the Kidney Initiative”.

The “Be the Kidney Initiative” is a wage-top up program for employees who are taking medical leave in order to become a living organ donor.

Presently, living donors receive up to six weeks of Employment Insurance (EI) while recovering from their surgery.  The EI program renumerates living donors with up to 55% of their regular, pre-surgery wages.

Employers who participate in the “Be the Kidney Inititiave” would top-up their living donor employees’ EI benefits, so that they received a total of 95% of their pre-surgery wages.  Presently, Kemp Harvey Group is encouraging other businesses around the province to offer the “Be the Kidney Initiative” to their staff.

Read about this exciting new program in Kemp Harvey Group’s Winter 2013 Newsletter.  This newsletter also includes a useful checklist for taxpayers who are preparing for their 2012 personal income tax return.  Click here to read about these items and more: Kemp Harvey Group Winter 2013 Newsletter

Hiring Credit for Small Business

Are you a small business that paid less than $10,000.00 in employer’s EI premiums in 2010? You may be elibible for the Hiring Credit for Small Business (HCSB). This is a one-time credit of up to $1,000.00. The credit is calculated based on the difference between the 2010 and 2011 EI premiums paid by your business. Canada Revenue Agency will automatically calculate this credit when the 2011 T4 information return is filed.

For more infomation visit: http://www.cra-arc.gc.ca/hiringcredit/