Stephanie Jones said the move is a step in the right direction and that the vast majority of its chamber members will save money from the change, which takes effect on Jan. 1.
“The way it will work is that businesses paying less than $15,000 in EI premiums for their employees will benefit from the break, which reduces the EI premium from $1.88 per $100 of payroll to $1.60,” said Jones in a news release. “That is a drop of 15 per cent in EI costs and it’ll help more than 90 per cent of the business owners in our area.”
It’s estimated that small businesses provide half the private sector jobs nationally.
“It’s supposed to boost hiring, which helps everyone in the local area,” Jones said. “But even when it doesn’t create new jobs, it’ll help ensure that current positions remain stable, allowing people to plan ahead for major purchases. A stable economy is always our preference. ”
A year ago, the federal government froze EI premiums for Canadian workers at $1.88 for every $100 they earn. Employer contributions are 1.4 times that amount.
“We, along with our counterparts at the Canadian Chamber of Commerce, will be watching the results early in the New Year, and will band together to lobby for more help as things unfold,” she said. “The Canadian Chamber will hold its annual meeting in Charlottetown from Sept. 27th to 29th, and the Truro-Colchester chamber will be there to speak on behalf of Colchester County businesses.”