Payroll Tax Amendment Act 2023

What this bill does

This bill updates Bermuda's payroll tax system by changing tax rates and income brackets for both employees and employers. It also provides tax relief for parents on maternity and paternity leave and raises the maximum income subject to payroll tax from $900,000 to $1,000,000.

If passed (voted YES)

• Employees earning over $1,000,000 annually won't pay payroll tax on income above that amount (previously capped at $900,000)
• Parents on maternity leave (up to 13 weeks) or paternity leave (up to 5 days) won't have payroll tax deducted from their pay during that time
• Tax rates will change across different income brackets and employer categories, with some businesses paying different rates based on their annual payroll size

If rejected (voted NO)

• The current payroll tax rates and income brackets remain unchanged
• High earners continue paying payroll tax on income above $900,000 (instead of the proposed $1,000,000 cap)
• Parents on maternity and paternity leave continue having payroll tax deducted from their leave payments

Who it affects

This affects all working people in Bermuda who pay payroll tax, with particular benefits for high earners and new parents. It also impacts all employers across different industries, from hotels and restaurants to retail stores and small businesses.