The huuman layer: 13th December 2022
This week is our penultimate report for 2022, as the markets begin to settle in with a scotch and put their feet up until the new fiscal year rolls around.
Top story this week☝️
Employment Insurance (EI) and CPP to rise in 2023
If you're an employer, you may not be aware that from January 1st 2023, both EI and CPP contributions will rise. This means you will have to contribute more to your employees EI or CPP from the beginning of the next fiscal year. Employer / Employee contribution is rising from 5.70% to 5.95%. If you're self employed then your personal contribution rate will rise from 11.40% to 11.90%. Link
If you're a huumans customer and concerned about this rise in EI and CPP, contact your huumans team to find out how this change will affect your business in the coming year.
News 🗞️
Rates rates rates!
Rates are up again to a new high, but then we expected a final hike before the beginning of holidays and the end of the fiscal year. We can expect rates to fall in 2023, and with GICs and Mortgages already beginning to calm down, the signs are looking good that we've hit the peak. Link
How does inflation actually work?
Good question. The answer, as you'd expect, is...a bit complicated. Luckily someone managed to break it all down in simple terms - which is good because don't we all love simple. Link
Changes in lending for small business
There's been some amendments to the Canada Small Business Financing Program (CSBFP) including a new class of loans, increased loan amounts and longer loan terms. If you've considered accessing the program in the past but not liked what was on offer, now maybe the time to have another look. Link
'Defrauding investors' is becoming a big problem
Recently we've seen several high profile cases shining a light on securities fraud (in 2021 alone, US consumers lost $5.8 Billion to securities fraud - an increase of 70%). If you're raising money for your business, the stakes (and the scrutiny) are getting ever more intense - and while the recent case of FTX is extreme, it all comes down to 'disclosure'. If there's one takeaway from all of this - it's that a lack of transparency is the root cause of most investor problems. Link
Canadians now have $1.83 in debt to every $1 of income
Statistics Canada has reported that the amount of debt households owe relative to their income has risen in the third quarter of 2022. Rising house prices have placed mortgage debt at $2.07 Trillion, and inflation has forced other debt to rise to $722.6 Billion. This could mean modest consumer spending in the coming year. Link
Analysis 💭
How to hire (and retain) people as a small business owner. Link
In the world of bookkeeping, machine learning is here to stay. Link
Rate hikes are an awful medicine, but the medicine is badly needed. Link
The global state of AI. Link
If you're a fan of Zapier - it now supports OpenAI. Link
Markets 💰
BOC Indicators (Link):
BOC Prime Rate: 6.45% ↗️
BOC Unemployment Rate: 5.1% ➡️
BOC CPI Inflation Rate: 6.9% ➡️
BOC $USD Exchange Rate (Link):
Low: 1.3582 CAD [0.7363 USD] ↗️
Average: 1.3632 CAD [0.7336 USD] ↗️
High: 1.3658 CAD [0.7322 USD] ↗️
Best GIC Rates (Link):
1-year GIC: 5.25% ↗️
3-year GIC: 5.15% ↗️
5-year GIC: 5.20% ➡️
Best 5Y Mortgage Rates (Link):
Variable Closed: 5.200% ➡️
Variable Open: 6.600% ➡️
Fixed: 5.561% ➡️
Prime Rates (Link):
TD Bank: 6.45% ↗️
BMO: 6.45% ↗️
RBC: 6.45% ↗️
Scotiabank: 6.45% ↗️
CIBC: 6.45% ↗️
National Bank: 6.45% ↗️
CRA Canadian Pension Plan Rate: 5.70% (Rise due 1/1/2023)
CRA Employment Insurance Rate: 1.58% (Rise due 1/1/2023)
CRA Minimum Wage per Province: Link