Changes in Small Business Tax
As of January 1, 2019 business owners can generate up to $50,000 in passive income (investment income) before they start to lose access to the small business tax rate. In addition the small business tax rate is going down from 10% to 9% in 2019.
Changes in payroll
Watch out for changes in your pay cheque in 2019. CPP contributions will increase to 5.1% from 4.95% on earnings between $3,500 and $57,400. The increase will eventually pay for the new enhanced CPP.
This will be partially offset by a decrease in EI premiums, 1.62% from 1.66%
