We are now towards the end of summer and slowly but surely October 1st is drawing near. With this date, comes a change that is going to affect those that are running their businesses. The changes in minimum wage are going to be taking effect coming this October 1,2018. Currently we are sitting at a wage of 13.60/hour at minimum with an increase to 15.00/hour, for salespersons the increase is to 598/week and for domestic employees the increase is to 2848/month.
As small business owners we need to look at how we are going to offset some of these costs. It is not always easy to increase everyone’s wage by 1.40 when you look at the employees at minimum wage and the ones who are above minimum wage. Not only are we increasing the starting wage to 15/hour we also need to look at our employees who make more but may expect an increase as well. According to https://www.alberta.ca/alberta-minimum-wage-changes.aspx there is some assistance being implemented by the government to aid in this transition.
- reduced small business tax rates from 3% to 2%
- introduced the Enhanced Innovation Voucher and Small/Medium Enterprises Support program
- created the ministry of Economic Development and Trade to provide Alberta’s private sector job creators with a one-stop shop for economic development and diversification
- dedicated $34 billion over the next 5 years to support modern, efficient infrastructure for Alberta families and businesses
- provided more capital for ATB Financial and Alberta Enterprise to encourage investment in Alberta businesses
- expanded the mandate for the Alberta Investment Management Corporation
- reinstated the Summer Temporary Employment Program
- implemented the Canada-Alberta Job Grant, a six-year initiative with the Government of Canada to support employers in building a strong workforce through better trained workers
- introduced the Capital Investment Tax Credit to encourage investment and support job creation
With this increase we also need to be prepared to change how we are offering services, making sales etc. If we are unable to meet the demands of the wage increase as a business owner, the last thing you want to do is go under. There are some unfortunate steps that we may see some businesses doing at no fault of their own. We may see prices rise and benefit cutbacks. The rising prices not only can affect customers but also business to business purchases. These are things we need to be aware of that may occur.
What options are you looking at taking once the wage increase takes place? We would love to hear from you.