Langley East MLA Rich Coleman says businesses, especially farms in his constituency are facing major cost increases from the employer health tax. (Hansard TV)

B.C. health care payroll tax approved, takes effect Jan. 1

Employers calculating cost, including property taxes increases

The B.C. government’s employer health tax has been steered through the legislature with little notice, and employers with payrolls of $500,000 and larger are bracing for its impact.

Municipalities are preparing property tax increases to cover the payroll tax and Medical Services Plan premiums they will continue to pay at half rate next year. Finance Minister Carole James decided they would not get the exemption given to school districts, post-secondary schools and health authorities. Non-profits are exempted for annual payroll up to $1.5 million.

The tax takes effect Jan. 1, 2019 at 2.9 per cent on payroll between $500,000 and $1.5 million and 1.95 per cent on payroll amounts above $1.5 million. James said the 1.95 per cent rate is tied with Ontario for the lowest payroll health tax across other provinces, and emphasized that MSP premiums were reduced by half on Jan. 1, 2018.

Business leaders and opposition critics focused on the double taxation for 2019, and the extension of payroll tax to seasonal farm workers and others whose employers don’t pay MSP premiums.

RELATED: NDP tax increases adding up for B.C. residents

RELATED: B.C. Green MLA worried about payroll tax impact

Langley East MLA Rich Coleman told the legislature that municipalities in his area are looking at property tax increases between 2.5 and three per cent to cover the double cost next year. That means “probably about 90 per cent” of business leases will go up. One local farm that has operated for 40 years is facing a $100,000 increase in payroll costs for 2019, he said.

B.C. Green Party MLA Adam Olsen warned of the impact on large private employers in his Saanich North and the Islands constituency. An electrical contractor with 280 employees and a payroll of $20 million a year is looking at nearly a 10-fold increase in costs from 2017 to 2019, Olsen said.

James presented the payroll tax legislation at the same time as her government’s speculation tax on empty homes, which got most of the attention as she announced rate reductions demanded by B.C. Green Party leader Andrew Weaver.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Vintage vehicles, costumed drivers cruise Fernie streets

Wheels in the Valley hosted their first ever Rally in the Valley event this past Saturday

Food conditioned black bear destroyed in Elk Valley

The bear was destroyed by the Conservation Officer Service on June 28

Elkford students plant trees as part of reclamation project

The students planted over 200 trees throughout the community

Elk Valley wildlife conservation projects receive funding

The Habitat Conservation Trust Foundation announced $9.2 million in funding across the province

Registration opens for Fernie Writers Conference

The conference will take place from August 17-23 and will feature several accomplished authors

The pandemic is widening Canada’s workplace gender gap

Gender pay gap is incentivizing fathers to work while mothers watch children, a new B.C. study has found

Ex-Okanagan Mountie forfeits 20 days’ pay after sexual misconduct review

A former Vernon RCMP constable made sexual comments, grabbed genitals of male officer in two incidents 10 years ago

Man found dead on Okanagan trail identified as Hollywood actor

GoFundMe campaign launched for man found dead at summit of Spion Kop

3 people dead in Prince George motel fire

Fire personnel believe the blaze was suspicious although investigation in early stages

B.C. sets terms to review police, mental health, race relations

MLAs to recommend Police Act changes by May 2021

Feds announce $8.3M to deal with ‘ghost’ fishing gear in B.C. waters

Ghost gear accounts for up to 70 per cent of all macro-plastics in the ocean by weight

Almost 99% less land in B.C. burned this year compared to 2018

2018 was the worst year on record for wildfires

B.C. orders Coastal GasLink to stop pipeline construction near protected wetlands

The 670-kilometre pipeline is planned to transport natural gas from northeast B.C. to Kitimat

Most Read