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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