Small Businesses To Get Tax Break

Have you done your taxes yet? People all over Canada are in the midst of putting together their financial information for the purpose of their tax returns, if they haven’t done so already. The Synergy Merchant Services Blog has been ever so kind over the past couple of weeks, as it has provided some excellent tips on how to file your taxes properly. You’re welcome!

In addition to our wonderful tips is news coming out today on The Toronto Star‘s website from Ottawa Bureau Chief, Bruce Campion-Smith, that will help entrepreneurs with their taxes. Small businesses, he writes, are expected to get a break from the federal government on payroll taxes.

The purpose of this, writes Campion-Smith, is to encourage work-share programs and get more unemployed Canadians back into the world of work. As well, Ottawa is promising that the nation’s education system will be invested into in order to better prepare people to enter the workforce in the future.

Campion-Smith reminds us that Canada has done an impeccable job rebounding from the recession when compared to its contemporaries in the G7. Nevertheless, job creation is still at the forefront of the country’s priorities, as job loss was one of the most heavily impacted areas during the global economic downturn.

According to Finance Minister, Jim Flaherty: “We need to keep protecting and creating jobs now…Compared to other countries, Canada’s economy is performing very well — but our continued recovery is by no means assured.” One of the remaining problems is the mindset of business owners who are still hesitant to hire new employees in the post-recession era, notes Campion-Smith.

To change this attitude, Flaherty has proposed some new measures that will benefit small business owners, including “a new hiring credit to provide a one-year break on employment insurance for some 525,000 small businesses.” According to the Finance Minister, “the measure will reduce payroll costs for new jobs and encourage hiring.”

In addition, there will be an extension of work-sharing agreements by up to 16 weeks. Writes Campion-Smith: “These programs allow companies to avoid layoffs by offering employment insurance benefits to workers willing to work at reduced hours while their company recovers. This measure has already protected 280,000 jobs. The budget provides $10 million to stretch the program to October 2011.”