Pubs and restaurants in B.C. are among the businesses looking for ways to cover the province’s new employer health tax. (Responsible Service B.C.)

Pubs and restaurants in B.C. are among the businesses looking for ways to cover the province’s new employer health tax. (Responsible Service B.C.)

Diners’ health tax not catching on in B.C., restaurant group says

Small businesses look for options to cover employer health tax

One B.C. restaurant owner is being applauded for his transparency for covering part of the employer health tax with an up-front charge on customer bills, but the idea isn’t catching on yet.

As B.C. small businesses deal with the cost of the new tax on the portion of their payroll exceeding $500,000, they have to look at strategies to cover another cost, along with rising minimum wage, property tax and supplier increases.

In the restaurant business, with part-time staff and narrow profit margins, the choices came down to four, says Rob Chyzowski, owner of Belleville’s Watering Hole and Diner in downtown Victoria. With the new health tax costing him an estimated $40,000 a year, he could lay off staff, increase the price of food and beer, reduce serving sizes or add a new charge to the bill.

Chyzowski opted for the latter, a one-per-cent charge on customer bills labelled “BCH” to represent the additional cost. He says most customers have accepted it.

Ian Tostenson, president of the B.C. Restaurant and Food Services Association, says he hasn’t heard of any other restaurant or pub going the same route.

RELATED: Employer health tax wins ‘paperweight award’ for red tape

RELATED: Full weight of B.C. employer health tax to be felt in 2020

“There is a concern about the cost of the health tax, no question about it,” Tostenson said Friday. “But there has been nobody else who’s come out and said, ‘I’m doing this.’ So I think the industry is probably looking at, will it work, and maybe if it works, they should do the same thing.”

Another Vancouver Island restaurant owner, Calen McNeil, is looking at his options as his Big Wheel Burgers chain has grown to four restaurants. He pays above minimum wage and health benefits to keep employees in a tight market for skilled workers, but he says the new payroll tax is pushing him below the break-even point.

“In effect I have to borrow the money to pay the tax,” McNeil told radio station CKNW this week.

His latest burger restaurant opened in Nanaimo, but for further expansion, he’s looking outside B.C.

The employer health tax must be paid quarterly by most larger companies, at a rate of 2.925 per cent on payroll amounts between $500,000 and $1.5 million. Above that, the tax is charged at 1.95 per cent, applying to “all remuneration” including benefits paid to employees.

The B.C. government has an employer health tax calculator so business owners can estimate their payroll and meet the quarterly deadlines to pay it. That system earned the B.C. government a “paperweight award” from the Canadian Federation of Independent Business this week for imposing complicated regulations on business.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The construction zone remains for now at Clover Point, but plans for a new pedestrian zone and partially closed traffic loop were approved by Victoria councillors on Thursday. (Don Descoteau/News Staff)
Victoria council compromises with partial closure of Clover Point

Option preserves parking 14 spots facing ocean, creates more pedestrian space

(Black Press Media file photo)
Trees Cannabis to reignite downtown Victoria location as licensed store

The dispensary will reopen its 230 Cook St. location on Saturday

A wind warning is in effect for Greater Victoria Thursday afternoon. (Black Press Media file photo)
Strong winds predicted for Greater Victoria

Environment Canada issues warning for Thursday afternoon

Sergeant Francis Dion with the box containing HMCS Calgary’s new secret mascot costume. (HMCSNCSMCalgary/Facebook)
Don Devenney is a Goldstream Gazette 2021 Local Hero as Community Builder of the year. (Don Denton/Black Press Media)
West Shore volunteer’s efforts an exercise in adventurous pursuits

Don Devenney is the 2021 recipient of the Community Builder Award

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature. (B.C. government)
B.C. reports 10 additional deaths, 395 new COVID-19 cases

The majority of new coronavirus infections were in the Fraser Health region

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of Feb. 23

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

(Black Press Media File Photo)
POLL: Are you struggling with Greater Victoria’s cost of housing?

While Victoria remains one of the most expensive cities in the country… Continue reading

Nanaimo Ladysmith Public Schools is preparing a rapid response team proposal for submission to the B.C. Ministry of Education. (Chris Bush/News Bulletin)
Nanaimo-Ladysmith school district chosen as COVID-19 rapid response team

Team to consist of SD68 and Island Health staff, according to B.C. Ministry of Education

A new survey has found that virtual visits are British Columbian’s preferred way to see the doctor amid the COVID-19 pandemic. (Unsplash)
Majority of British Columbians now prefer routine virtual doctor’s visits: study

More than 82% feel virtual health options reduce wait times, 64% think they lead to better health

Captain and Maria, a pair of big and affectionate akbash dogs, must be adopted together because they are so closely bonded. (SPCA image)
Shuswap SPCA seeks forever home for inseparable Akbash dogs

A fundraiser to help medical expenses for Captain and Maria earned over 10 times its goal

The missing camper heard a GSAR helicopter, and ran from his tree well waving his arms. File photo
Man trapped on Manning mountain did nearly everything right to survive: SAR

The winter experienced camper was overwhelmed by snow conditions

Castlegar doctor Megan Taylor contracted COVID-19 in November. This photo was taken before the pandemic. Photo: Submitted
Kootenay doctor shares experience contracting COVID-19

Castlegar doctor shares her COVID experience

Ashley Paxman, 29, is in the ICU after being struck by a vehicle along Highway 97 Feb. 18, 2021. She remains in critical condition. (GoFundMe)
Okanagan woman in ICU with broken bones in face after being struck by car

She remains in serious condition following Feb. 18 incident

Most Read