Bill 105, or the Supporting Small Businesses Act, recently passed a second reading after debate in the Ontario Legislature. The purpose of Bill 105 is to provide relief from the Employer Health Tax to small businesses, charities and not-for-profit organizations.
As proposed, starting on January 1, 2014, Bill 105 would increase the exemption from the Employer Health Tax for private sector employers from $400,000 to $450,000. This means that 60,000 employers would pay less Employer Health Tax, saving up to $975 annually, while 12,000 employers would no longer pay the tax at all. Those organizations would also save the cost of filing an Employer Health Tax return all together.
Bill 105 would also eliminate the current exemption for employers with over $5 million in payroll. This means that the cost of exempting smaller businesses from Employer Health Tax would be offset by having larger employers pay additional tax. Employer Health Tax raises about $5 billion in revenue for the province each year.
In order for Bill 105 to take effect by January 1, 2014, the Legislature would have to review the bill in committee and pass the third reading of the bill before the House recesses for the holidays in December.
CCPartners will continue to update the status of Bill 105.
For information on how you may be able to participate in the public hearings on Bill 105, click here.
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