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B.C. employer health tax wins 91Ƶpaperweight award91Ƶ for red tape

Businesses forced to estimate payroll, pay new tax quarterly
20280361_web1_20200124-BPD-fax-machine-flickr
Fax machines live on in some small businesses solely to communicate with government departments that have not updated their procedures, says the Canadian Federation of Independent Business. (Flickr)

The B.C. government91Ƶs new employer health tax has made the Canadian Federation of Independent Business 2020 91Ƶpaperweight awards91Ƶ list, an annual contest for 91Ƶthe worst examples of useless and excessive regulations.91Ƶ

The tax that took effect in 2019 to replace B.C.91Ƶs Medical Services Plan premiums is assessed on payrolls of more than $500,000. Small businesses such as restaurants are facing a March 31 deadline to pay smaller amounts for 2019, and most businesses have been required since last year to pay the tax quarterly.

The tax 91Ƶforces business owners to pay quarterly instalments based on estimates of their payroll, not their actual payroll,91Ƶ the CFIB said in its announcement of the awards.

B.C.91Ƶs union-only public construction regulation also won a paperweight award, 91Ƶfor forcing employers and employees to comply with 336 pages of complex, inflexible union rules that go as far as outlining what kind of meat and condiments are acceptable in sandwiches.91Ƶ

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The awards are part of the CFIB91Ƶs 11th annual Red Tape Awareness Week, which includes an open letter to all governments calling for them to take 91Ƶat least one meaningful step to modernize in 2020.91Ƶ

A symbol of the 2020 government reform effort is the fax machine, with a social media hashtag #axethefax.

91ƵIt91Ƶs crazy that in 2020 some business owners keep a fax machine solely to deal with governments, or have to stand in line for a simple business licence application,91Ƶ said Jordi Morgan, CFIB91Ƶs vice president for Atlantic Canada. 91ƵThis kind of red tape costs Canadians and small businesses countless hours of wasted time and frustration.91Ƶ

Other include Alberta Gaming Liquor and Cannabis, which forces small brewers that outsource their brewing to a contract manufacturer to ship all of the final products to one of two official warehouses near Edmonton before they can sell at their store-fronts, 91Ƶeven if the contractor is located right next door.91Ƶ

Several federal government departments make the list, including the Canada Revenue Agency for its collection of federal carbon tax. It requires truck drivers who drive through multiple provinces to fill out and return forms every quarter, 91Ƶwith complex math to show how much fuel was bought and used in each province.91Ƶ



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