Canada, 4th October: Canada government has unveiled a new plan of offering tax incentives for entrepreneurs as well as small businesses creating new jobs in Canada.
Under this program, owners of small businesses including entrepreneurs in Canada will be provided a tax incentives (up to $1,000)equivalent to additional EI(Employment Insurance) premiums involved in recruiting a new employee.
Tax credit- a great incentive for creating jobs in Canada--The memo received by the CBC states that the tax credit provided to small businesses could help in cutting down the additional EI premiums required to be spent on hiring each additional worker.
This will help small businesses hire two part-time workers at a salary of up to $20,000 each or a single worker at a salary of up to $40,000, the memo clarifies. This would be a significant factor in stimulating small-time entrepreneurs as well as small businesses in Canada to hire new employees, the CBC reveals.
Presently, there are around 525,000 entrepreneurs and small businesses in Canada.
The new plan by the federal government is a significant step for expediting economic recovery of Canada.
Since July 2009, Canada has created around 600,000 new jobs, the memo says.
Economists predict creation of around 15,000 new jobs for the month of September this year, a recent Bloomberg survey reveals with indications of jobless rate going to remain steady at 7.3 percent.
This measure was a part of the 2011 budget in March before the government election campaign after its reintroduction in June this year. The memo maintains the program is a part of the strong plan for creation of new jobs in Canada and for accelerating economic growth.
Many may not agree that short-term incentives are good for creating new jobs in Canada. President of Canadian Manufacturers and Exporters, Jayson Myers, says that moves like subsidizing jobs for the sake of creating jobs is not a great idea. Nonetheless, the Conservatives assert that such an incentive will allure small businesses to create more jobs in Canada.
However, it will not be mandatory for small businesses to hire new workforce to be eligible under this program