E-NEWSLETTER SIGNUP
“What is the employer health tax? How do I register? What do I need to know? ”
The employer health tax is a new tax that the Provincial Government has brought into BC, effective January 1, 2019. The theory behind it was such that it would replace the MSP premiums that individuals and families were paying while transferring the cost to the employer.
Employers with remuneration (i.e. salaries, wages, bonuses) over $500,000 will be subject to paying this tax and is done through your eTaxBC account. If you already have an account (i.e. PST registrants), you can use the same one, otherwise, you will need to set up an account.
Registration begins on January 7, 2019. Employers required to pay instalments must register by May 15, 2019 while all other taxable employers must register by December 31, 2019.
Instalments are determined by calculating what you would have paid for calendar year 2018, if the Employer Health Tax was already in effect. If the amount you would have owed is greater than $2,925, then you are required to pay 25% of the total on June 15, September 15 and December 15 of 2019 with the remainder due March 31, 2020.
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***This blog is for information only and not to be used as tax advice or planning without first seeking professional advice. Information is subject to change without notice.