2019 could be a tough year for employers and employees.

That’s because the employer’s health tax kicks in.

Chris Duncan, president of the Duncan Cowichan Chamber of Commerce is also a partner with MNP and said it’s going to be expensive for some employers.

“For employers that have been paying MSP for their employees and now they are going to be paying this employer health tax. They are getting a double whammy in 2019, until 2020 when MSP will be phased out.”

He says, because the tax is payable based on payroll, it’s bad news for employees too.

“Employers are going to be incentivized now to lower their payroll so they can pay less employer health tax. So, that means hiring less people, more minimum wage employees versus giving raises. Things like that are going to affect the economy in general.”

Duncan says Chambers have pressed the province to revise the plan, but the pleas appear to have fallen on deaf ears.