What is BC employer health tax?
The employer health tax is an annual tax on certain business in B.C. remuneration paid to employees and former employees in a calendar year beginning on January 1, 2019. Province of BC implemented this tax through employer payroll.
Who has to pay?
Employers with payroll 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.
What is the rate?
– Of $500,000 (exemption amount) 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)
– Greater than $1,500,000 pay the tax on their total B.C. remuneration as calculated:
1.95% x total B.C. remuneration
When to remit this tax?
Jan 7, 2019 – Registration is open
May 15, 2019 – Deadline to register if you are required to pay instalments in the 2019 calendar year
Jun 15, 2019 – First instalment payment due date
Dec 31, 2019 – Deadline to register for all other taxable employers
Mar 31, 2020 – Deadline to file and pay your first return
For more information read here