Elimination of Federal Tax Exemption Causes Compensation Change for Morden Council.
Starting in 2019, the full annual indemnity and any per diems Council receives will be subject to income tax (federal and provincial) and additional Canada Pension Plan (CPP) premiums. This will result in a decrease in take home pay for each member of Council by an estimated 10% to 15%.
Following the lead of cities across Canada, the City of Morden is changing the way it compensates Council to make up for the loss of a federal tax exemption starting January 1, 2019.
Please read the attached for full details of Council’s decision.
Morden Press Release - November 2018 Council Compensation