Employer Health Tax
Beginning Jan. 1, 2019, the BC government is collecting an annual tax from employers based on their annual B.C. payroll. Employers with B.C. payrolls greater than $500,000 (exemption amount) in a calendar year must register for the employer health tax. (The employer health tax is separate and distinct from remitting source deductions or MSP premiums.)
|Total remuneration paid in BC||Calculating the tax|
|Up to $500,000||If B.C. remuneration is below the $500,000 exemption amount, no employer health tax is paid|
|$500,001 – $1.5 million||2.925% x (B.C. remuneration – $500,000)|
|Greater than $1.5 million||1.95% x total B.C. remuneration|
Note: The B.C. employer health tax is deductible from business income for income tax purposes.
- Employer Health Tax Overview
- Register for Employer Health Tax
- Employer Health Tax Calculator
- Employer Health Tax Act
Employers include an individual, a corporation, a partnership, a trust or a government.
A joint venture is not considered to be an employer for purposes of the employer health tax. Rather, it is the venturers individually that are considered to be the employers.
The employer health tax applies differently to charitable or non-profit employers. See Employer Health Tax for Charitable or Non-Profit Employers for information.