Ontario hikes insurance premiums on small employers
Last-minute changes not enough to stop WSIB from increasing rates
TORONTO, Oct. 24, 2012 /CNW/ - Today's decision by the Workplace Safety and Insurance Board (WSIB) to increase mandatory insurance premiums on employers will hit the already struggling small business sector the hardest, says the Canadian Federation of Independent Business (CFIB).
For a small trucking company with 5 employees, this announcement could mean having to fork over an extra $394 to the WSIB; bringing their total 2013 premiums to $16,532. If you are a small roofing company, you could be on the hook for an additional $1,061; bringing your total 2013 premiums to $43,602. Regardless of the business, increasing taxes on payroll could not have come at a worse time for the Ontario economy.
"Small business confidence in Ontario is lower today than it was at the beginning of 2012," said CFIB's Ontario vice president Satinder Chera. "Rolling the dice on higher taxes will further jeopardize jobs and the province's economic recovery."
Small business owners had nervously anticipated higher insurance premiums since a report showing the WSIB deep in the red was released earlier this year. Struggling with a $14.2 billion unfunded liability, the province's workers' compensation system is entirely funded by premiums on employers. Currently, Ontario's average premium rate is the third-highest in Canada.
"While recent steps by the Labour Minister to cut costs at the WSIB were encouraging, its cold comfort to the province's small businesses that are now stuck paying a higher tax bill," said Chera.
As Canada's largest association of small- and medium-sized businesses, CFIB is Powered by Entrepreneurs™. Established in 1971, CFIB takes direction from more than 109,000 members in every sector nationwide, giving independent business a strong and influential voice at all levels of government and helping to grow the economy.
SOURCE: CANADIAN FEDERATION OF INDEPENDENT BUSINESSFor further information:
To arrange an interview with Satinder Chera, please contact Gisele Lumsden at 416-222-8022 or by email at firstname.lastname@example.org.