The Small Business Job Credit will reduce Employment Insurance (EI) premiums by 15 percent for the next two years. Any firm that pays employer EI premiums equal to or less than $15,000 in those years will be eligible for the credit, which will be applied automatically. It is estimated that this will result in savings of approximately $550 million for small businesses over the next two years.
Businesses will not have to apply for the Small Business Job Credit, as it will be automatically administered by the Canada Revenue Agency, which will determine eligibility and calculate the amount of the credit. Once calculated, the credit will be applied against any outstanding debt and then the remaining amount, if any, will be refunded to the small business.
“Our Government recognizes the importance of small businesses in fueling the Canadian economy,” said MP Toet. “The Small Business Job Credit is great news for small businesses in Elmwood-Transcona, as it will enable them to hire more employees and continue to grow our local economy.”
The Government of Canada has introduced numerous measures since 2006 to support small business growth, including the temporary hiring credit and the EI rate freeze. In total, small businesses have seen their taxes reduced by 34 percent since 2006.
