A reduction in Employment Insurance premiums has been welcomed by small businesses.
The Department of Finance announced the change Thursday which means that the 2019 employee EI premium rate will be $1.62 per $100 of insurable earnings—a decrease of 4 cents from the current rate.
It will be the lowest EI premium rate since 1980 and, for most Canadian workers, the lowest they have paid since entering the workforce.
A joint statement from Minister of Finance Bill Morneau and Jean-Yves Duclos, Minister of Families, Children and Social Development, said:
"Thanks to the hard work of Canadians, job creation has been strong, and unemployment is near 40-year lows. While more and more Canadians are feeling the benefits of Canada's strong economy, the Government is committed to ensuring that middle class Canadians and people working hard to join the middle class have the support they need as they work to build better lives for themselves and their families.”
The Canadian Federation of Independent Businesses said the reduction was good news for business and one that it has been recommending for many years.
“We are pleased by the direction the government has taken to lower EI premiums at a time when small businesses are feeling pressure from trade uncertainty and upcoming CPP hikes,” said Corinne Pohlmann, CFIB’s senior vice-president of national affairs. “A thriving and stable small business sector brings lasting jobs to communities across Canada. Lowering payroll costs means employers can invest more of their funds in employee training, business growth and future planning.”
She added that supporting small businesses to be competitive benefits us all.
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