End this impediment
January 10, 2013
As small businessmen, we are ever trying to improve our business. It has come to our attention that if our business should see success, and is able to expand and consider hiring additional Bermudian staff, our payroll tax rate will increase. This additional tax may be a deterrent from hiring to a small company in these challenging times, and should be reviewed and modified or abolished. Put simply, if the companys payroll is less than $50,000 per quarter, there is one rate, then should the payroll exceed $50,000 per quarter, the rate goes up and the increase lands squarely on the employer. Thats not a large company with payroll figures in that range, a few good staff can cost a company that much very quickly.
So, in effect, this tax scheme discourages local companies from investing in that fourth or fifth staff member, because the higher rate effects the entire payroll amount, as we understand the tax. Second to shutting down the numerous scofflaw business owners who do not handle their payroll deductions legally and properly, it would be great if the powers that be would revisit this policy, and give the small businesses trying to get ahead a little more consideration. Perhaps just increase the tax on the amount over $50,000, instead of the whole payroll, or eliminate this speed bump to small businesses growth altogether.
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