Small business owners in Canada to get EI breaks
Canada, 25th March: Small businesses in Canada are going to benefit from the recent measures introduced for reducing tax credit and red tape.
The new measures are aimed to offset rising EI (Employment Insurance) premium costs.
What are the new measurers for small business owners in Canada? ---
• As per the announcement by the federal government this Tuesday, nearly 525,000 small business owners will be provided a one-time credit up to a maximum of $1,000 as a compensation for higher EI premiums this year. •
The offer of one-time credit for small businesses in Canada will be extended to employers whose EI premiums were less than or equal to $10,000 in the last year.
• Around $870 million will be spent by the government of Canada over the period of two years for extending the ecoENERGY retrofit scheme under which the government provides tax credits to those going in for energy efficient homes.
• A budget of $20 million has been set aside for a period of two years to enable allure Canadian Youth Business Foundation help young entrepreneurs.
• The move will curb red tape by introduction of the Red Tape Reduction Commission and upgrading of BizPal service.
• Extension of two years to a program set to get become expired in the year 2012 under which companies are allowed to write off the machinery and new equipment costs in two years.
• Expansion of the list of equipment by inclusion of green-energy equipment like solar panels, fuel cells etc.
Move aims to encourage small businesses in Canada to hire more employees—
The federal government, through its one-time offer, wants owners of Canada small businesses to create more jobs in Canada by adding workforce into their respective businesses while still making them eligible for getting the credit.
Canadian Finance Minister Jim Flaherty said the tax cuts will help employers to make more investment, grow and stay competitive. It will reduce costs of payroll for new jobs and encourage increased hiring, he added. It is being estimated that the move will help in reducing the overall costs of payroll by nearly $165 million.
According to the owner of the Shephard Health clinic in Kensington, Dr. Jayson Shephard, it’s a great deal for small businesses in Canada. Vice-president of CFIB (Canadian Federation of Independent Business) in Saskatchewan, Marilyn Braun-Pollon, states that the CFIB feels happy in addressing one of the top budget issues.
The move of introducing EI Hiring Credit was proposed by the CFIB and this will be a big boost for small businesses to increase their employees, she added.
Among the industries likely to gain from such move include primary manufacturing, automotive, electronics and computer, and pulp and paper industry.