Payroll Tax Amendment and Validation Act 2022

What this bill does

This bill extends several payroll tax breaks for employers until March 2024 and adjusts tax rates to give lower-income workers a small break while increasing taxes on middle-income earners. It also legally validates payroll tax waivers the government granted during COVID-19.

If passed (voted YES)

• Employers can continue getting tax breaks for hiring new workers and Bermudian entertainers until March 2024 instead of the breaks expiring in March 2022
• Workers earning up to $48,000 per year will pay less payroll tax (1.50% instead of 2.00%), while those earning $48,001-$96,000 will pay more (9.00% instead of 8.50%)
• All COVID-related payroll tax waivers granted by government since July 2020 become officially legal and valid

If rejected (voted NO)

• Important employer tax incentives for new hires and entertainers would have already expired in March 2022, potentially reducing job creation
• Current payroll tax rates would remain unchanged, with lower earners paying slightly more and middle earners paying slightly less than proposed
• COVID-era tax waivers might face legal challenges about whether they were properly authorized

Who it affects

This primarily affects all employed people in Bermuda through payroll tax rate changes, employers who hire new workers or entertainers, and businesses that received COVID-related tax relief from government.