Sep 11, 2014
By Bob Komsic
After months of weak job growth, the Harper government’s cutting the Employment Insurance premium rate for small business.
As of January 1st, the rate drops from $1.88 per $100 of earnings to $1.60.
Larger firms will continue paying premiums based on the $1.88 rate.
Because employers pay 1.4 times the rate, Ottawa says the 28-cent reduction is equivalent to a reduction of 39-cents per $100 of earnings.
Federal Finance Minister Joe Oliver says the ”Small Business Job Credit” will save small businesses more than $550-million over the next two years.
It’ll be administered as an automatic credit through Canada Revenue Agency.
As a result, it means no reductions in EI premiums paid by workers.
Oliver denies the move’s in response to concern about the economy.
”It’s not a sign of worry. It’s a sign of confidence that we’re continuing on the right path.”