Small businesses might be getting help from this year’s federal budget, if the Conservative government can get it passed.
All opposition parties have said they will reject the budget.
If the budget passes, about 525,000 small business owners would get a hiring credit of up to $1,000 to help offset the cost of increased EI premiums in 2011.
The Hiring Credit for Small Business is available to small businesses whose EI premiums were at or below $10,000 in 2010. The federal government believes the credit will reduce payroll costs by $165 million.
“We’re very pleased to see the hiring credit in the budget,” said Laura Jones, vice-president for B.C. and Yukon at the Canadian Federation of Independent Business (CFIB), who spoke with Business in Vancouver March 22.
Jones said the credit was one of the CFIB’s top asks for the budget.
“That tax credit is going to be very meaningful for small businesses as they climb out of the recession. It’s particularly timely right now, as businesses look at hiring and expanding.”
The CFIB was also pleased to see changes made at the Canada Revenue Agency (CRA) to make the system easier for taxpayers. The CRA will now be required to provide written tax advice for basic inquiries through its website, Jones said.
“It’s a complaint we frequently hear from business owners that they don’t get good customer service from the CRA. This is an important step in the right direction.”