Canada: Compliance: British Columbia Employer Health Tax Update

Canada: Compliance: British Columbia Employer Health Tax UpdateThe employer health tax (EHT) is an annual tax on British Columbia (B.C.) remuneration paid to employees and former employees in a calendar year beginning on January 1, 2019.

According to the British Columbia government website, Employers with B.C. remuneration greater than $500,000 (exemption amount) in a calendar year must register for the employer health tax. ‘Employers’ include an individual, a corporation, a partnership, a trust, or a government.

Employers with B.C. remuneration:

  • Of $500,000 or less don’t pay employer health tax
  • Between $500,000.01 and $1,500,000 (notch rate amount) pay the reduced tax amount as calculated:
    • 2.925% x (B.C. remuneration – $500,000)

For more legislative updates for Canada and its provinces, read Asinta Partner Cowan Insurance Group’s full compliance update.