School District 69 (Qualicum) trustees voted to increase their pay by $1,000 starting next year as a means to offset a change to tax rules that will see trustees pay more income tax. — NEWS File Photo

Qualicum school trustees vote themselves a $1K pay raise to offset tax change

School board approves increase to counteract federal hike

School District 69 (Qualicum) trustees voted to increase their pay by $1,000 during a Nov. 27 board meeting as a means of offsetting a federal income tax increase.

In a memo sent to trustees, SD69’s secretary treasurer Ron Amos explained the federal tax change.

“The current income tax treatment is that one-third of trustee remuneration is not taxable because it is considered an expense allowance.”

Specifically, it’s considered a non-accountable expense allowance, according to Canada Revenue Agency information. In other words, it’s meant to pay for work-related expenses that you don’t have to justify with receipts and/or other details.

SD69 trustees can have other, larger expenses covered (for workshops, travel outside of the district, etc.) on top of what they are paid.

For example, for last school year, SD69’s five trustees were paid a total of $74,131.01 and had $7,675.62 worth of expenses.

The tax change applies to their pay only. Up to 2019, a third of their pay was tax-free because it was considered a non-accountable expense allowance.

As of 2019, trustees will have to pay income tax on all of their pay.

“Other school district jurisdictions recognizing the tax consequences to the net paid remuneration have increased remuneration to offset the increase tax amount,” said Amos in his memo to trustees.

To offset SD69 trustee pay, the increase cost is approximately $1,000 per trustee, he said.

The raise is effective Jan. 1, 2019.

Last year, trustees were paid between $13,987 and $15,155 (those acting as chair or vice-chair see an increase to their pay).

Just Posted

‘Handmade for Hope’ will run at Orca Place in Parksville

Grant received; program will run in different room

RDN residents display good recycling habits

Program shows most people comply with collection rules

Parksville swimmer shatters four world records

Nicholas Bennett, 16, shines on world stage

Errington mill closes, approximately 50 workers lose their jobs

Family-owned operation was open for 30 years

Bag of cocaine left in Parksville Qualicum Beach grocery store aisle

RCMP: ‘We sure would like to talk to’ person who left drugs behind

Fashion Fridays: Ethical and sustainable gifts for the season

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Residents in B.C. city could face 133% tax hike in ‘worst case’ lawsuit outcome: report

An average home could see a tax increase of $2,164 in one year

B.C. Transit finds 28 used fareboxes online, saves $300,000

‘Someone joked maybe we can buy used fareboxes on eBay,’ CEO says

Many of Canada’s working poor can’t afford lawyers, don’t qualify for legal aid

One lawyer says many people earn too much to qualify for legal aid, but not enough to really live on

Economy lost 71,200 jobs in November, unemployment rate climbs to 5.9%

Jobless rate is at its highest since August 2018, when it hit 6%

BC Hydro reservoirs see record low rain across Vancouver Island

Hydro electric watersheds are at a third of their normal levels

VIDEO: John Lennon’s iconic Rolls Royce rolls into Vancouver Island college for checkup

Royal BC Museum, Camosun College and Coachwerks Restorations come together to care for car

VIDEO: Rockslide closes part of Highway 93 in Fairmont Hot Springs

Geotechnical team called in to do an assessment after rocks fell from hoodoos

Petition calls for appeal of ex-Burns Lake mayor’s sentence for sex assault

Prosecution service says Luke Strimbold’s case is under review

Most Read