Canada Announces Payroll Tax Break For Small Businesses

The Canadian government has announced the Small Business Job Credit for 2015 and 2016 with, which effectively reduces payroll taxes by ~15% for qualifying businesses. The credit is equal to the difference between premiums paid at the legislative rate of CAD 1.88 per CAD 100 of insurable earnings and a reduced rate for small businesses of CAD 1.60 per CAD 100.

The credit applies for small businesses paying employer insurance premiums of CAD 15,000 or less per year and will be calculated autom…