Employer Health Tax (EHT)

The government of BC will be implementing the new Employer Health Tax (EHT) effective January 1, 2019.  The Medical Services Plan premiums (MSPP) were reduced by 50% on Jan 1, 2018 and will be eliminated on January 1, 2020.

Individual taxpayers pay MSP premiums while the proposed EHT will be paid through an employers annual payroll tax.   Tax rates will be based on employment income and taxable benefits. The chart below shows the proposed tax rates for defined payroll ranges.

Annual BC Payroll Annual Tax Tax as a percent of Payroll
$500,000 or less 0 0.00%
$750,000 $7,313 0.98%
$1,000,000 $14,625 1.46%
$1,250,000 $21,938 1.76%
$1,500,000 $29,950 1.95%
$29,250 plus 1.95% of payroll
over $1,500,000 over $1.5 million 1.95%

 

Legislation is to be enacted in the fall of 2018 when complete details will be available.

For full information and calculation structure see the Government Notice here Ministry of Finance Employer Health Tax Notice

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