Tax reform will impact Canadian Small Business employers — who represent over 90% of new career growth opportunities. While the many provinces struggle to balance those publicly employed with those working in private enterprises, more career opportunities exist in the private sector and the majority are small business. What is a small business? Small refers to the number of employees.
Industry Canada Small Business Categories:
- a small business has 1 to 99 paid employees
- a medium-sized business has 100 to 499 paid employees
- a large business has 500 or more paid employees
As you can see in the chart below, small businesses make up the majority of business establishments in Canada.
Update on Tax Reform
Small business has a big impact in Canada. The ongoing tax reforms proposed through the summer ended in a consultation period on October 2nd, 2017. The proposals presented this summer are game changers and will reorganize how farmers, family businesses and entrepreneurs make decisions about their financial futures. It is proposed to be a “fairness” exercise however it reorganizes 98% of Canada’s businesses. The consultation period was full of pushback from business owners.
New changes in the small business tax rates including a tax reduction from 10.5 percent to nine per cent by 2019 was announced on October 16, 2017. If you are a small business owner it is very important to review your financial plans and structures with professionals.