Employer Health Tax

Beginning Jan. 1, 2019, the BC government is collecting an annual tax from employers based on their annual B.C. payroll. Employers with B.C. payrolls greater than $500,000 (exemption amount) in a calendar year must register for the employer health tax. (The employer health tax is separate and distinct from remitting source deductions or MSP premiums.)

Total Remuneration Paid in BCCalculating the Tax
Up to $500,000If B.C. remuneration is below the $500,000 exemption amount, no employer health tax is paid
$500,001 – $1.5 million2.925% x (B.C. remuneration – $500,000)
Greater than $1.5 million1.95% x total B.C. remuneration

Note: The B.C. employer health tax is deductible from business income for income tax purposes.

Employers include an individual, a corporation, a partnership, a trust or a government.

A joint venture is not considered to be an employer for purposes of the employer health tax. Rather, it is the venture’s individually that are considered to be the employers.

The employer health tax applies differently to charitable or non-profit employers. See Employer Health Tax for Charitable or Non-Profit Employers  for information.

Go to Top