Canada’s British Columbian (BC) government introduced legislation this month to create a new employer health tax aimed at replacing Medical Services Plan (MSP) premiums.
The tax, which comes into force on 1 January 2019, applies to companies with payrolls of CA$500,000 (US$381,403) or more, according to The Surrey Now-Leader. It will result in local municipalities paying both the payroll-based tax and half their employees’ MSP fees for 2019.
Non-profit organisations are exempted, while health authorities, school districts and post-secondary institutions have been told they will receive budget increases to cover the tax.
According to BC Finance Minister Carole James, individuals who pay their own MSP premiums will benefit from what is effectively a personal income tax cut. The plan is to phase-out MSP completely by 2020.
At the same time as she introduced the employer health tax bill, the Finance Minister also announced an equally controversial “speculation and empty home tax” Bill.
But two days later, in a surprise turnaround, the government also revealed changes that would halve the tax rate to 0.5% for all local second home-owners. It likewise pledged that the revenues would be used to develop housing initiatives in the areas in which taxes were collected, according to Columbia Valley Pioneer.
Gill Oliver is a business and property journalist who has written for The Daily Mail/Mail Online's This is Money, The Press Association and many national and regional newspapers and magazines.
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Canada’s British Columbian (BC) government introduced legislation this month to create a new employer health tax aimed at replacing Medical Services Plan (MSP) premiums.
The tax, which comes into force on 1 January 2019, applies to companies with payrolls of CA$500,000 (US$381,403) or more, according to The Surrey Now-Leader. It will result in local municipalities paying both the payroll-based tax and half their employees’ MSP fees for 2019.
Non-profit organisations are exempted, while health authorities, school districts and post-secondary institutions have been told they will receive budget increases to cover the tax.
According to BC Finance Minister Carole James, individuals who pay their own MSP premiums will benefit from what is effectively a personal income tax cut. The plan is to phase-out MSP completely by 2020.
At the same time as she introduced the employer health tax bill, the Finance Minister also announced an equally controversial “speculation and empty home tax” Bill.
But two days later, in a surprise turnaround, the government also revealed changes that would halve the tax rate to 0.5% for all local second home-owners. It likewise pledged that the revenues would be used to develop housing initiatives in the areas in which taxes were collected, according to Columbia Valley Pioneer.
Gill Oliver is a business and property journalist who has written for The Daily Mail/Mail Online's This is Money, The Press Association and many national and regional newspapers and magazines.
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BC business groups call for government to drop "job killer" payroll tax
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Very helpful post
Thank u and keep posting.
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