We see beyond the numbers. You profit by our knowledge.
Employers currently contribute $1.40 for every $1.00 that is withheld from their employees in EI premiums. This new credit, announced by Minister of Finance, Joe Oliver, 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."1
CRA is going to administer the credit directly on an employer's return (most likely in a way similar to how the Hiring Credit for Small Business "HCSB" was administered). That credit was automatically calculated based on the T4 Summary produced by the employer and which must be filed no later than Feb 28th each year for the preceding calendar year. I have not heard how this new credit will be managed but I do expect it will be in a similar fashion.
The Honourable Minister also announced that further reductions will be seen in 2017 when the program reaches the "break even point". CRA's website states that in 2017 "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." 2
Footnotes: 1 and 2 are both directly from the Canada Revenue Agency's website http://www.fin.gc.ca/n14/14-120-eng.asp
Hello all and Happy Summer! Here at BCD we have been busy and so the summer is passing by all too quickly. But being busy is good, so we shall not complain too much!
I thought it was a good idea to post a quiick note about the August Civic Holiday in Ontario.
MONDAY AUGUST 4 2014 is NOT a statutory holiday.
As an employer you can choose to stay open and have staff working.
If you give them the day off it is your decision IF and HOW they are to be paid.
You can choose totally unpaid day off, employer pays as per normal work schedule on a Monday, staff use a vacation day…
Just remember this is not a day that is included in the Ministry of Labour Stat Calculator so you cannot use that to help you determine amounts to be paid.
Please feel free to call the office if you have any concerns or questions.
Have a great rest of summer!