Employer Health Tax – what is it and how much will your business pay?

Effective January 1, 2019, the Employer Health Tax (EHT) will be implemented in BC. The EHT is a payroll tax, calculated on employment income, including bonuses, commissions, tips paid through employers, employer RRSP contributions and many taxable benefits. Employers whose total annual payroll in BC is less than $500,000 will not pay EHT, and rates for employers with annual payroll greater than $500,000 are dependent on total payroll. For charities and non-profits, EHT does not kick in until total annual BC payroll is $1,500,000.

Learn more about the proposed tax rates and calculations, and thresholds for annual or quarterly payment of EHT at:

https://www2.gov.bc.ca/assets/gov/taxes/employer-health-tax/notice-2018-001-employer-health-tax.pdf