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Bill 105, the Supporting Small Businesses Act, Passes Second Reading

Practice Areas: ConsultingEmployment Standards

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.

The Supporting Small Businesses Act was given Royal Assent on December 12, 2013 and is now law. To review the entire Bill, please click HERE

For information on how you may be able to participate in the public hearings on Bill 105, click HERE

Please Note: This blog has been prepared as an informational service for our clients and other interested parties. It is not intended to constitute legal advice, a complete statement of the law or opinion on any subject. Although we endeavour to ensure the accuracy of the content, no one should act upon the information provided without a thorough examination of the law after the facts of a specific situation are fully considered.


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