Payroll Tax Amendment Act 2024

What this bill does

This bill extends a tax break program that helps employers avoid paying payroll taxes when they hire new full-time workers. It updates the dates for this "new hire relief" program to cover the period from April 2024 to March 2026.

If passed (voted YES)

• Employers who hire new full-time workers (15+ hours per week) can avoid paying the employer portion of payroll tax on those new employees through March 2026
• Companies must maintain their employment levels from March 2022 plus any new hires to qualify for the tax relief
• Only employers with annual payrolls over $500,000 or exempted undertakings can participate, and they must be current on their tax payments

If rejected (voted NO)

• The new hire tax relief program would not be extended to cover 2024-2026
• Employers would pay full payroll taxes on all employees, including any new hires
• There would be no tax incentive specifically designed to encourage businesses to create new jobs during this period

Who it affects

This primarily affects larger Bermuda employers (those with payrolls over $500,000) and exempted undertakings who are considering hiring new full-time staff. It also impacts people seeking full-time employment, as it creates financial incentives for businesses to hire.