BC Employer Health Tax

BC Employer Health Tax

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 

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