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CPP premium jump will push some to the brink, CFIB warns Passifiume, Bryan . The Toronto Sun ; Toronto [Toronto]. 20 Nov 2020: A.6.

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FULL TEXT As COVID continues to take a huge bite out of the bottom line of many businesses, an impending premium hike will

push many to the brink of shutdown.

That was the message Thursday from the Canadian Federation of Independent Business, which warns that the

Jan. 1, 2021 increase to Canada Pension Plan premiums will be hard on businesses, one in three of which it says

are losing money every day they're open during the pandemic.

"Payroll tax increases are bad news for small businesses in any year, but hiking them in 2021 will make the tough

months ahead even harder," CFIB president Dan Kelly said.

"Let's not forget that the premium hike hits employees too, ensuring that every working Canadian will see a drop in

their take-home income unless their employer is able to give them a larger raise on Jan. 1."

Premiums are set to rise by 3.8% on Jan. 1, part of a seven-year plan to increase CPP benefits in the future.

Salary income subject to CPP premiums is also increasing by 5.3% - so for workers earning $60,000 or more, both

employee and employer can expect to see more than a 9% CPP premium increase, the CFIB says.

The federation is urging that CPP and QPP premiums - as well as the federal carbon tax - be frozen to allow small

business owners some breathing room.

"Given the difficult situation many smaller firms are facing simply trying to hold on to their staff, now is not the

time to raise taxes," Kelly said. [email protected] twitter.com/bryanpassifiume DETAILS

Identifier / keyword: covid continues bottom businesses impending premium

Publication title: The Toronto Sun; Toronto

First page: A.6

Publication year: 2020

Publication date: Nov 20, 2020

Section: News

Publisher: Postmedia Network Inc.

Place of publication: Toronto

Country of publication: Canada, Toronto

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Publication subject: General Interest Periodicals--Canada

ISSN: 08373175

Source type: Newspaper

Language of publication: English

Document type: News

ProQuest document ID: 2462546709

Document URL: http://ra.ocls.ca/ra/login.aspx?inst=centennial

&url=https://www.proquest.com/newspapers/cpp-premium-jump-will-push-some-

brink-cfib-warns/docview/2462546709/se-2?accountid=39331

Last updated: 2020-11-21

Database: ProQuest Central