The Canadian Federation of Independent Business (CFIB) is applauding today’s decision by the federal government to freeze Employment Insurance premiums for both employers and employees for the next three years - 2014, 2015, and 2016.
Given the increases that had previously been projected for 2014 and 2015, today’s announcement represents a savings of up to $340 next year for a small business employing 10 employees. As employers pay 60% of the cost of the EI system, small firms can use these savings to hire, improve wages or help grow their businesses.
“As payroll taxes like EI are particularly challenging for small business, today’s announcement of an EI rate freeze is fantastic news for Canada’s entrepreneurs and their employees,” said CFIB president Dan Kelly. “This move will keep hundreds of millions of dollars in the pockets of employers and employees which can only be a positive for the Canadian economy.”
In addition to pushing for an EI rate reduction starting in 2016, CFIB is fighting hard against the push by many provinces for a CPP/QPP increase. “Clearly, our work on payroll taxes is not done” added Kelly. “An increase in the CPP/QPP will take more out of the pockets of Canadians than it will return to them in terms of pension benefits.”
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