Duncan, North Cowichan Brace for Double-barreled taxation in 2019
With the elimination of Medical Services Plan premiums by 2020, major employers are going to face the Employer Health Tax starting on January 1, 2019.
The Employer Health Tax sees businesses with a payroll of more than $500,000 dollars taxed nearly one percent and those businesses with a payroll in excess of $1,500,000 dollars paying one point nine five per cent.
The City of Duncan is getting hit with double-barreled taxation in 2019, as the city will have to pay MSP and the Employer Health Tax with the total eclipsing $75,000 dollars.
Director of Finance at the City of Duncan Talitha Soldera says Duncan will get hit with more than $50,000 dollars in Employer Health Taxes come 2020.
Director of Financial Services at North Cowichan Mark Frame says MSP premiums will be cut in half in 2018, but that’s where the good news ends.
Next year, North Cowichan is going to have to pay MSP and the Employer Health Tax and that will amount to about $405,000 dollars.