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CRFA celebrates payroll tax victory
October 1, 2010
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In response to CRFA’s intense lobbying efforts, the federal Minister of Finance has scaled back scheduled EI premium increases from $0.21/$100 to $0.07/$100 of payroll – a savings to foodservice operators of $20 million in 2011 alone.
Last spring, CRFA was the first to sound the alarm when government confirmed it had budgeted for the maximum premium increase allowable – $0.15 for employees and $0.21 for employers – for each of the next five years. We argued it would:
- make it difficult for restaurant operators to retain current employees, let alone hire new ones;
- prolong the recession; and
- negate government stimulus measures to promote job growth.
In addition to lowering the scheduled 2011 EI premium increase, government agreed to reduce the maximum amount EI can be increased in a year from $0.21 to $0.14 – which represents cumulative savings of $200 million for the industry. Government also announced it would be consulting with CRFA and other groups to review and improve the EI rate-setting mechanism for more stable, predictable rates going forward.
CRFA will continue to push government to contribute to the EI fund from General Revenue to avoid further increases in the fund’s deficit compounding future employee and employer obligations.
| Click here for CRFA’s EI Savings Calculator to help you calculate how much your business will save. |
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