Ontario pension plan delayed until 2018
The Ontario government announced that it will hold off on launching its public pension plan until 2018.
- For medium and large-sized businesses, the mandatory pension plan will launch in 2018
- For small businesses (those with 50 or fewer employees), contributions will begin in 2019
- CFIB continues to firmly oppose the ORPP and plans for CPP expansion; small businesses are hopeful that today’s announcement will make it less likely for Ontario businesses to deal with a double whammy of both ORPP and CPP payroll tax hikes
The delay is an encouraging sign because it allows the government to reverse course or consider other voluntary options for retirement savings. The government’s own polling data shows that the majority of businesses (and citizens) are opposed to the ORPP and will be negatively affected by it.
Small business owners are strongly opposed to the proposed ORPP, with 90% of business owners against the plan, according to CFIB survey data. Seventy per cent of Ontario’s small business owners say the ORPP will force them to freeze salaries, while more than half said that they will have to eliminate positions to deal with the added costs.
To see what the ORPP would cost you and your employees or if you agree that the ORPP should be scrapped, sign CFIB’s petition to Axe the Ontario Pension Tax. You can also download and sign a copy of our Action Alert.