Finance Minister Jim Flaherty announced a three year-freeze on employment insurance premiums for employers and employees on Monday as a way to support small and medium-size businesses and working Canadians.
“We are able to do this because of the falling unemployment rate — more people are working, fewer people are claiming employment insurance benefits and as a result the employment insurance operating account is on track to return to balance earlier than had been planned,” Flaherty told reporters in Ottawa.
Flaherty said cancelling the premium increase the government had announced in the last budget will result in savings of $660 million in 2014 for both employers and employees.
However, maximum insurable earnings will rise to $48,600 in 2014, which means higher-income employees will still pay more in premiums next year, just not as much as they would have under the planned increase.
Chosen excerpts by Job Market Monitor. Read the whole story at
via Jim Flaherty puts 3-year freeze on EI premiums – Business – CBC News.
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Freeze in EI premiums will heat up Canadian job market: CME – Canadian Manufacturers & Exporters
The federal decision to freeze EI premiums over the next three years will spur investment, job growth, and help Canadian companies take advantage of new business opportunities, according to Canada’s largest trade and industry association, Canadian Manufacturers and Exporters (CME).
via Freeze in EI premiums will heat up Canadian job market: CME – Canadian Manufacturers & Exporters.
Capping Employment Insurance Premiums a Welcome Boost to Business: BMO
BMO Financial Group today expressed support for the Federal Government’s decision to cancel plans to increase employment insurance (EI) premiums and cap premiums at 2013 levels for a period of three years. Maintaining the rate at $1.88 per $100 of insurable earnings is expected to save Canadian businesses $660 million in 2014.
“This is a welcome boost for Canadian small business owners and will add to the increasing optimism we are hearing from our clients,” said Steve Murphy, Senior Vice-President, BMO Commercial Banking. “With companies planning to invest in their employees and grow their workforce, new doors will open for expansion into new markets.”
“We applaud the measure, as it recognizes the fact that Canada’s EI account has improved markedly since the recession, and it is likely that no further increases in EI rates are needed,” said Doug Porter, Chief Economist, BMO Capital Markets. “The announcement also leaves open the potential for cuts in the next two years.”
via Capping Employment Insurance Premiums a Welcome Boost to Business: BMO.
CLC Criticizes Freeze on EI Premiums
The President of the Canadian Labour Congress says that the federal government’s three-year freeze on Employment Insurance (EI) premiums is being done on the backs of unemployed Canadians.
Finance Minister Jim Flaherty claims that freezing EI premiums will help businesses in Canada to create more jobs. “This is a shell game,” says Ken Georgetti. “This government has given away billions in tax breaks to corporations and the promise is always that they will use that windfall to invest in creating jobs. But they are sitting on the cash or paying it out in big bonuses to their CEOs. That money would be far more productive in the hands of unemployed workers who would spend it in the economy.”
Georgetti also criticizes Flaherty’s claim that he can freeze premiums because fewer people are receiving EI. “The number of unemployed workers has changed very little over the past year and a half. But fewer of those people are able to receive EI because the minister and his government have made it increasingly difficult for the unemployed to receive benefits.”
The most recent numbers show that the proportion of unemployed workers receiving EI has shrunk to an all-time low of 37.8%. “This government has cynically changed the rules in a way that leaves far too many unemployed Canadians out in the cold,” says Georgetti.
via CLC Criticizes Freeze on EI Premiums.
CFIB applauds Ottawa’s decision to freeze EI premiums
The Canadian Federation of Independent Business (CFIB) says today’s announcement by the federal givernment that it intends to freeze Employment Insurance premiums for both employers and employees for the next three years represents a savings of up to $340 next year for a small business employing 10 employees.
The CFIB contends that as employers pay 60 per cent of the cost of the EI system, small firms can use these savings to hire, improve wages or help grow their businesses.
“As payroll taxes like EI are particularly challenging for small business, today’s announcement of an EI rate freeze is fantastic news for Canada’s entrepreneurs and their employees,” says CFIB President Dan Kelly. “This move will keep hundreds of millions of dollars in the pockets of employers and employees, which can only be a positive for the Canadian economy.”
via CFIB applauds Ottawa’s decision to freeze EI premiums – Business – The Burnside News.
Canada / Retailers welcome freeze on employment insurance premium rates
Retail Council of Canada (RCC) fully supports the Government’s announcement today of a three-year freeze of Employment Insurance (EI) premium rates Continue reading »
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