Toronto – Payroll taxes are taking a big bite out of employers’ and employees’ earnings and it is about to get even bigger, says the Canadian Federation of Independent Business (CFIB). This burden is so severe that 77 per cent of small business owners say that payroll taxes are the form of taxation that most severely impedes their growth.
“Payroll taxes are one of the most detrimental forms of taxation for small firms, because they impose a heavy administrative burden and are not scaled up or down depending on how profitable a business is,” said Simon Gaudreault, CFIB’s senior director of national research. “With CPP and QPP set to increase by at least 20 per cent over the next seven years, payroll taxes will be taking an even bigger chunk out of salaries and profit margins, putting small firms’ ability to grow, hire new staff and compete at risk.”
