A new Employer Health Tax that will pay for the provincial government’s scrapping of Medical Services Plan premiums will result in a $1.5-million bill for Tri-City taxpayers.
Starting Jan. 1, 2020, the province will introduce the full tax to offset the elimination of the MSP levies, meaning employers with payrolls totalling more than $1.5 million annually — including the cities of Coquitlam, Port Coquitlam and Port Moody — will face a 1.95% hit to their bottom lines; payrolls between $500,000 and $1.5 million, like those of the villages of Anmore and Belcarra, will get a reduced rate.
Nikki Caulfield, Coquitlam’s director of human resources and corporate planning, said the city is bracing for a net expense of $600,000 as of 2020 while Port Coquitlam is facing a similar charge, translating to a potential $9 boost in property taxes. In Port Moody, the city will be hit with an estimated $345,000 cost in 2020.
The Employer Health Tax will be phased in next year, with businesses having to pay 50% of MSP premiums as well as the Employer Health Tax.
For PoCo, that’s another $615,000, said Karen Grommada, PoCo’s director of finance, whose report on the cost impact will go before the city’s finance and budget committee next Tuesday.
School District 43 trustees are expected to receive their numbers at the April 10 board and budget meeting, said SD43 spokesperson Peter Chevrier.
The provincial government itself faces a 15% jump in payroll costs under the EHT to pay for MLAs, constituency office staff and legislature employees; charities and non-profit groups may receive some relief, Premier John Horgan has said.
The move from the MSP premium to a payroll tax is aimed at making life more affordable, the NDP stated in its budget last month. The full MSP premiums for a two-parent family with two kids were $1,800 a year, and $900 for individuals.
jcleugh@tricitynews.com
