Ontario Budget Provides Tax Relief for Small Businesses
Nov 12, 2020 | HRAI
On November 5th, Ontario Minister of Finance Rod Philips tabled the government’s proposed 2020-2021 budget. The budget contained a number of tax measures designed to assist small business owners. Of particular interest to HRAI members are the following:
- Reduction in Business and Education Tax rate and Property Tax rate: Starting January 1, 2021, the BET rate for more than 200,000 employers in Ontario will be reduced. In some communities, this could mean a reduction of up to 30% for many businesses. Overall, the government projects that this measure will save the small business community approximately $450 million.
- Employer Health Tax: when the pandemic began, the government increased the exemption from the Employer Health Tax to $1 million – meaning businesses would temporarily no longer have to pay EHT on the first million dollars of their payroll. Budget 2020 makes this exemption permanent, effectively exempting about 90% of Ontario businesses from paying EHT.
- Commercial and Industrial Electricity Prices: The government plans to save industrial and commercial ratepayers an average of 14% to 16% on their electricity bills by directly funding continued costs of existing energy contracts. At a cost of $1.3 billion over three years, the government is prioritizing lower electricity rates as a key competitive factor in the Province’s economic recovery.
For more information, contact Dorothy McCabe at 1-800-267-2231 ext. 274 or email dmccabe@hrai.ca.