What Impact Will the Federal Budget Have On Your Taxes?
There was a great deal of speculation leading into the recent announcement of the Trudeau government’s 2017 budget. As a business owner, you may be wondering what that means for your company’s bottom line. While there is still active debate among political analysts about the specific impacts, there are a few items that we do know will influence business.
In 2016, the Trudeau government vowed to decrease corporate taxes for small business from 11% to 9% over four years. To date, they have fulfilled the proposed decrease for year one, lowering the tax rate to 10.5%. However, much to the dismay of organizations such as the Canadian Federation of Independent Business, future reductions as outlined have been deferred.
Where business will most feel the impacts of the administrative changes implemented by the Liberal government is the payroll tax, which business analysts assess will be the most damaging for small business owners. Additionally, a 3% increase in employer costs for employment insurance will have a financial implication as well that may create some obstacles for merchants with small to mid-sized operations.
Incentives are being offered for skills training to help prepare employees for available jobs, but that may not be a benefit enjoyed by all employers. Though trades-based positions and skilled labour roles may see a significant increase in qualified domestic candidates for these jobs through this program.
While most experts and critics agree that the 2017 budget doesn’t offer much new, but rather a clarification of the platform introduced in 2016, there are some changes that you may want to consider for your business both now and over the next two years. If you have questions about what tax implications may be in store for your industry as it relates to the budget, we can work with you to identify the challenges and propose solutions.
At Rutwind Brar, our team stays on top of changing regulations and legislation to ensure that our client portfolios are adapting to change. Let’s talk today about what this budget means for you and your business.