Prince George, BC – May 2, 2019 –The Prince George Chamber of Commerce initiated a survey of our members at the beginning of April 2019, to better understand the impacts and outcomes of the Employers Health Tax (EHT) on business in our community.
The three main issues identified were:
– Moving operations/payroll/head office to Alberta;
– Reducing staffing, wages or locations, which results in less money entering the economy and increased unemployment
– Less funding available for not-for-profits as corporate donors are saddled with new taxes
These issues are concerning to the Chamber, as our member businesses are beginning to feel the impacts of the EHT. The EHT came into effect in 2019, while at the same time, the Province is ‘double-dipping’. Employers who pay MSP premiums for their employees are still required to do so this year
“As a Chamber, we are challenged to see businesses exploring options to relocate all or a portion of their operations to a neighbouring Province,” said Todd Corrigall, CEO, Prince George Chamber of Commerce. “With more than 68% of respondents saying they will be impacted by the EHT, we hope that Government will take notice, as our neighbours to the East and South continue to look for new ways to lessen the impacts of taxation on job creators.”
Responses at a glance:
1. Is/Will your business be impacted by the EHT – 70% responded Yes
2. Will you need to reduce staffing levels to accommodate this fee – 36% responded Yes
3. Will your services/product costs increase as a result of this fee – 62% response Yes
4. Are you considering changes to your structure – 23% responded Yes
“One of the more troubling survey responses was from a not-for-profit, who noted that – while they are not directly impacted by the EHT from a payroll perspective – they are seeing corporate donors unable to sustain giving levels as their costs have increased. As not-for-profits support a variety of services and opportunities in our communities, this impact can be incredibly damaging,” said Corrigall.
The EHT survey was open through April 2019, utilizing an external site to manage and process data, ensuring a non-partial and confidential approach
Todd Corrigall, CEO, Prince George Chamber of Commerce
P: 250.562.2454 E: email@example.com