B.C. implements employer health tax

Province joins likes of Manitoba, Newfoundland and Labrador, Ontario, Quebec
By Sheila Brawn
|Canadian Payroll Reporter|Last Updated: 12/19/2018
B.C. Legislature
On Jan. 1, B.C.'s provincial government implemented an employer health tax. It applies to employers whose annual B.C. payroll exceeds $500,000. Credit: poemnist (Shutterstock)

Beginning this month, employers in British Columbia will have to adjust to a new payroll tax.

On Jan. 1, the provincial government implemented the employer health tax (EHT). It applies to employers whose annual B.C. payroll exceeds $500,000.

For employers whose payroll is between $500,000.01 and $1.5 million, the tax rate is 2.925 per cent on the amount of payroll that exceeds $500,000. For payroll over $1.5 million, it is 1.95 per cent on the entire B.C. payroll. Different rules apply for registered charities and non-profits.