Savvy employers will have to move to direct debit payments to avoid an increase in their payroll tax outlay.

The Office of the Tax Commissioner has advised that as of October 1, the recharge fee applied to payroll tax payments made by credit or debit card will increase from 1.5 per cent to 2.5 per cent.

A Government spokeswoman commented: “The increase to 2.5 per cent aligns the recharge fee more closely with the actual charges imposed by the Government's banking and payment service providers.

“Taxpayers who wish to avoid the recharge fee must use electronic bank transfer (direct debit).

“To register to pay via direct debit please complete the Electronic Funds Transfer Form that can be located midway of the welcome screen once logged in at www.etax.gov.bm. The EFT applications are typically processed within 48 hours.”

The spokeswoman said the Office of the Tax Commissioner remains committed to providing secure, efficient, and accessible payment options while ensuring the prudent stewardship of public funds and the fair allocation of costs associated with tax collection services.

• For further information please e-mail taxenquiry@gov.bm