Major victory for small business as EI rates frozen for three years

Major victory for small business

Major victory for small business

CFIB president Dan Kelly welcomes EI freeze on behalf of small businesses.

CFIB joined federal Finance Minister Jim Flaherty today as he announced a three-year freeze in Employment Insurance premiums for both employers and employees (2014, 2015, and 2016). Here is a link to the announcement.

Given the increases that had previously been projected for 2014 and 2015, the change 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.

CFIB knows from its members that payroll taxes like EI are particularly challenging for small business. This announcement is fantastic news for Canada’s entrepreneurs and their employees, and as such, 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 a CPP/QPP increase proposed by many provinces.