A meeting between commerce reps and senior government officials saw attention - and scrutiny - directed at the Employer Health Tax on Tuesday.
Greater Vernon Chamber of Commerce vice-president Krystin Kempton attended the day-long roundtable in Kelowna, which saw attendants from 11 chambers of commerce throughout the Thompson-Okanagan and 12 government ministries. There, she brought up concerns she’s gathered from Vernon businesses.
“We have heard from our members that the Employer Health Tax is negatively impacting private sector businesses and non-profits with payrolls of more than $500,000 annually,” said Kempton.
“By reducing already limited revenue margins, the tax means employers may not be able to provide valued staff with salary increases or they may have to hike fees or reduce staff.”
READ MORE: B.C. businesses bracing for health payroll tax impact on jobs
Announced in the provincial NDP’s 2018 budget, the B.C. Employer Health Tax came into effect January 1 and has different tax rates depending on an employer’s payroll. Employers with a payroll of more than $1.5 million pay a rate of 1.95 per cent. Payrolls of less than $500,000 are exempt from the tax. Employers with a payroll between $500,000 and $1.5 million pay a reduced tax rate, which can be calculated here.
Kempton was encouraged by the dialogue at the roundtable.
“We were able to establish personal relationships with individuals responsible for developing and implementing policy in B.C.,” she said.
“There is nothing like meeting a person face-to-face and establishing common ground.”
Other issues brought to the table included measures to reduce burdens on developers by allowing flexibility on when they must pay charges to municipalities.
READ MORE: Vernon Chamber of Commerce checks in
Conversation also turned to strategies to expand agro-tourism, creating programs to deal with family physician shortages and federal-provincial collaborations towards reintegrating people in the criminal justice system into the community.
“I am hopeful that this session was just the first step in meaningful dialogue between Okanagan chambers and the government,” said Kempton.