Some non-profits may feel the pinch of a new provincial payroll tax, according to a question posed by Richmond Centre’s MLA during the legislative assembly’s question period.
On Mar. 5, Teresa Wat read excerpts from a letter from Richmond’s Thompson Community Association, stating that the new payroll tax replacing MSP premiums would cost their organization $12,000. The increase in minimum wage would affect the organization as well, she said.
“[The association] is very concerned about the new NDP employer health tax,” Wat said during question period. “Does the minister of finance, do you really think that this non-profit in my riding should reduce services in order to balance its budget?”
Carole James, finance minister, said many non-profits are currently paying MSP premiums for their employees and that the province has given the new process years to be implemented so that organizations can discuss and plan for these changes to healthcare payments.
However, Wat responded that the Thompson Community Association believes the only way to cover the cost of this payroll tax will be to increase costs of services to the public.
Richmond Cares, Richmond Gives, a charity that facilitates volunteering and giving back to the community, told the Richmond News that they are currently assessing how the new payroll tax will affect them as the organization had previously covered a large portion of MSP payments for their employees.
The Vancouver School Board also has concerns about the impact of the tax on its budget.
Wat said other businesses and associations have also come forward with similar concerns, such as Flying Fresh Air Freight which estimates it will have to pay more than $40,000 per year.
The Richmond News also previously reported that local restaurants are concerned that they may have to raise their prices to compensate for increased costs.
