Tax Tip:   Small Business Job Credit

On September 11, 2014 Minister of Finance Joe Oliver announced the introduction of the Small Business Job Credit. The credit will be automatically administered (no need to apply) to eligible businesses that pay employer EI premiums equal to or less than $15,000 in 2015 and/or 2016. The credit is expected to be worth approximately 39 cents per $100 of insurable earnings.

For example, at 2014 rates, the employer EI premiums payable for an employee earning $48,600 totals $1,279. For 2015, a savings of approximately $190 would be experienced for the same pensionable earnings.

Action item: No action needed – if eligible, your business will be automatically credited!