Bermuda Issues Guidance On Payroll Tax Changes
by Mike Godfrey, Lowtax.net, Washington
10 April, 2020
Bermuda has issued guidance on calculating payroll tax for the period April 1, 2020, to March 31, 2021.
The February 21, 2020, budget statement introduced a number of changes to the payroll tax system.
Taxpayers with payrolls of BMD350,000 (USD350,000) or more a year are now required to file electronically, beginning with returns for the April to June 2020 quarter. Returns must be filed on or before July 15, 2020. Penalties will be imposed where returns are not submitted in the correct format.
The New Hire Relief has been extended to all employers with payrolls of between BMD500,000 and BMD1m a year. Employers who engage new hires between April 1, 2020, and March 31, 2022, and who increase the number of full-time equivalent employees from those reported in the baseline period of January to March 2020 will be eligible for the relief. Employers benefiting from the relief will pay an employer portion of zero percent on the remuneration paid to qualifying employees up to and including the tax period from January to March 2022. The employee portion will be payable at the progressive tax rates.
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