Increased payroll remittances thresholds
Currently, every employer with an average monthly withholding amount (AMWA) of $15,000 is classified as an accelerated remitter. As well, employers with a $50,000 AMWA are required to remit bi-weekly. Budget 2014 proposes the introduction of increased thresholds for accelerated remitters to $25,000 (from $15,000) and to $100,000 (from $50,000). The Department of Finance has estimated that 50,000 employers will see their required number of remittances cut in half.
“Increased thresholds for accelerated remitters will lower administration costs for some employers that were previously required to remit on a more frequent basis,” said Patrick Culhane, President and CEO of the Canadian Payroll Association. “The world has changed dramatically since 1990 and a payroll of $50,000 per month is no longer a large business.”
EI premium freeze
The budget would freeze the EI premium rate at the 2013 level of $1.88 per $100 of insurable earnings. This was a good start, according to the Canadian Federation of Independent Business, but the group had hoped the government would go further and start reducing EI premiums for small businesses.
CFIB president Dan Kelly said he was disappointed by the elimination of the EI hiring credit for small business.
“We urge government to move quickly to reduce EI premiums as soon as the account is back in balance,” Kelly said.