Supporting Small Businesses Act Passes Final Vote
Ontario Reducing Costs for Small Businesses
Ontario is increasing opportunities for 60,000 small businesses, charities and not-for-profit organizations to grow and save money starting Jan. 1, 2014.
Today, the Supporting Small Businesses Act passed final vote with all party support - the 13th government bill to pass in 2013. The changes mean 88 per cent of private-sector employers in Ontario will now be exempt from paying the Employer Health Tax. The exemption will increase from $400,000 to $450,000 of Ontario payroll, saving most employers up to $975 every year. This change will cut costs and reduce paperwork for businesses so they can reinvest in their company or hire more staff.
Providing tax relief for small businesses is part of Ontario's plan to support a dynamic and innovative business climate, one of the three pillars of the government's economic plan to invest in people and build modern infrastructure.
- Over 60,000 smaller employers would pay less EHT, including more than 12,000 employers that will no longer pay the tax, and would save the cost of filing an Employer Health Tax return.
- The exemption will be adjusted to inflation every five years.
- Private sector employers with annual payrolls over $5 million, including groups of associated employers, will lose the exemption. Registered charities with all payroll sizes will be able to continue to claim the exemption.
“We are working to provide real benefits for small businesses across the province. Passing the Supporting Small Businesses Act, which cuts the Employer Health Tax, will help lower the costs and paper burden for small businesses and allow them to hire more workers as well as invest in new equipment, which will help grow the economy.”