91原创 Township and City will pay plenty in payroll taxes to cover the MSP changes announced in last week鈥檚 budget.
The province announced it was phasing out MSP premiums for 2020 and implementing a new payroll tax to cover premiums.
鈥淭he new 1.95 per cent payroll tax being implemented by the provincial government will cost the City of 91原创 approximately $236,000, in addition to the $55,000 in reduced MSP premiums which won鈥檛 be phased out until 2020,鈥� said Darrin Leite, the City鈥檚 director of corporate services.
Municipalities such as the City won鈥檛 have to start paying the extra right away but will have to face additional costs come 2019.
鈥淗ow the additional costs will be paid for, will be determined during the process of drafting the 2019 financial plan,鈥� he added.
If the additional payroll tax costs are covered by property taxes, City taxpayers would an increase of 0.8 per cent next year.
The 91原创 School District is awaiting more information from the Ministry of Education.
鈥淎s the announcement is so recent, the district is still awaiting clarity from the Ministry of Education on exactly how this will look,鈥� explained communications manager Ken Hoff. 鈥淐alculation and impact would be a part of the amended budget process due to the timing.鈥�
91原创 Township is still assessing the MSP premium changes.
