Released on September 12, 2014
Saskatchewan Finance Minister Ken Krawetz welcomes the federal government’s recently announced Small Business Job Credit.“This is certainly good news for many of Saskatchewan’s small businesses, in a time when our province is growing,” Krawetz said. “A fifteen per cent reduction in Employment Insurance costs is significant for small businesses that are providing jobs and helping drive our economy.”
Federal Minister of Finance Joe Oliver announced Thursday that the credit is expected to save about 780,000 Canadian businesses more than $550 million over the next two years. The credit will effectively lower small businesses’ Employment Insurance (EI) premiums from the current rate of $1.88 to $1.60 per $100 of insurable earnings in 2015 and 2016. Businesses that pay employer EI premiums equal to or less than $15,000 annually in those years will be eligible for the credit.
There are 40,475 small businesses in Saskatchewan, defined as businesses with one to 49 employees, according to the most recent Business Registry data.
More analysis needs to be done to estimate the exact benefit to Saskatchewan businesses. However, as it is a federal credit there is no cost to the Government of Saskatchewan. Also, the credit will automatically be calculated by the Canada Revenue Agency, presenting no extra administrative burden to small business owners.
“Now that the federal government is entering a period of forecasted surpluses, we look forward to working with them on identifying spending priorities, like health care and infrastructure, and potentially further tax reductions,” Krawetz said.
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For more information, contact:
Jeff Welke
Finance
Regina
Phone: 306-787-6046
Email: jeff.welke@gov.sk.ca