Business owners often underestimate hiring costs. The lowdown on CPP and EI – The Globe and Mail
For any business, large or small, employees are both necessary and expensive. Canadian businesses have to manage not just wages employees earn, but also pay roll taxes such as the Canada Pension Plan (CPP) and Employment Insurance (EI). As a result, expanding the roster of your small business can become far more costly than you might first expect. If you’re a small business, be sure to budget for and know the rules – for instance, who is eligible and who isn’t ineligible – to ensure you’re not under or overpaying.
“Some business owners are paying premiums when they don’t need to on family members in the business.”