Employer Health Tax Update

As part of the 2018 provincial budget released in February, 2018, the BC government introduced a new Employer Health Tax (EHT) which will become effective January 1, 2019 for employers with payroll costs in excess of $500,000 and non-profits with B.C. payroll over $1,500,000.

Use the employer health tax calculator to help you estimate the tax.

Registration for filing and paying EHT will begin in January 2019 and employers with B.C. payroll over $600,000 and non-profits with B.C. payroll over $1,600,000 at one location will be required to make quarterly instalment payments, based on the amount of tax that would have been payable if the EHT were in force January 1, 2018.

You must register by May 15, 2019 and instalments are due June 15, September 15, December 15.  If your payroll doesn’t qualify for instalment payments, you must register by December 31, 2019.

The first EHT return is due on March 31, 2020 and must be filed electronically through eTaxBC.

Payroll is defined as employment income and taxable benefits under the Income Tax Act. EHT is payable on this List of eligible remuneration.  Employer-paid contributions or premiums not subject to the EHT can be found on this List.

Employer Health Tax Overview gives all the information from the BC Government.

Below is a sample EHT calculation sheet showing how the EHT is applied.

EXAMPLE 2019 Remuneration and MSP Annual

If you have any further questions, please contact your ENCOMPASS Advisor.

 

 

 

 

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ENCOMPASS Benefits & HR Solutions is an independent employee benefits broker and Human Resources consulting firm. We work closely with clients to design and implement custom, cost-effective HR, employee benefits, health and wellness programs and group retirement savings plans. We represent our client’s needs first and foremost assisting with benefit cost analysis, negotiation, issue resolution and ongoing support. ENCOMPASS has relationships with ALL Canadian insurance carriers to find and negotiate the best insurance coverage and rates for our clients. Our team is here to help with all your Human Resources, group employee benefits and retirement needs.
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