Wednesday, May 30, 2012

Family Day Adds Cost Pressure To Many Businesses

Family Day To Cost 
Average Small Business $1135.00

The Canadian Federation of Independent Business (CFIB) reminds the BC Government that it still has work to do to mitigate Family Day-related costs for independent business owners.

“Today’s announcement about which date Family Day will fall on gives small and medium-sized business owners in BC some certainty and allows them to plan ahead,” says Shachi Kurl, British Columbia Director of Provincial Affairs. “However, they are no further ahead in terms of the cost pressure they will face as a result of an added statutory holiday in this province.”

CFIB estimates Family Day will cost an average small business in BC paying an average wage to employees an extra $1135 for labour and other expenses.

This is in addition to an estimated $3,051 small business owners must pay to transition to PST next year, as well as three minimum wage increases in the last 18 months, and the extra $1,250 all business owners are paying in corporate taxes as a result of government’s failure to eliminate the Small Business Corporate Tax Rate on April 1, 2012, as promised.

“Independent businesses acknowledge that Family Day has the potential to increase employee morale, and that for some limited sectors, such as hospitality and tourism, there are opportunities for growth,” says Kurl. “However, the majority of our members are telling us they need mitigation to help them with the financial burden this holiday places squarely on their shoulders.”

In response, CFIB has approached the provincial government with a number of creative, cost-effective measures to do this, including a proposed BC Training Bonus program aimed at enhancing skills training and employee retention during times of labour shortages. The bonus would be paid directly to employees, not employers.

“As Family Day legislation is debated and enacted, CFIB is calling on all legislators to recognize these issues and take action.”

The Canadian Federation of Independent Business (CFIB) is a non-profit, non-partisan business association that seeks to give independent business a greater voice in determining the laws that govern business and the country.  With 109,000 members across Canada, including 10,000 in British Columbia, it is the largest organization exclusively representing the interests of small and medium-sized independent businesses to all levels of government.


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