Payroll tax hurts not-for-profits in Richmond

VICTORIA (March 5, 2018) – A not-for-profit organization in Richmond says it will likely have to raise fees for its fitness, children’s and seniors programs thanks to the NDP’s new Employer’s Health Tax.

The Thompson Community Association says it will have to make up about $12,000 in tax, and notes upcoming increases to the minimum wage will have an effect as well.

Richmond North Centre MLA Teresa Wat raised the Association’s concerns in Question Period, asking Finance Minister Carole James whether it’s fair to charge constituents more for community programs to cover her payroll tax. James was dismissive and seemed to indicate the organization doesn’t understand how taxation works.

Meanwhile, other businesses and organizations in Richmond have also come forward with similar concerns. Flying Fresh Air Freight estimates it will be taxed more than $40,000 a year; Fairchild Holdings is predicting an additional $650,000 a year of additional employee benefit expenses; and the Richmond School Board could be forced to make $2.2 million in cuts to the classroom.