{"id":362,"date":"2018-11-07T21:48:00","date_gmt":"2018-11-08T05:48:00","guid":{"rendered":"https:\/\/immixgroup.ca\/blog\/?p=362"},"modified":"2022-02-06T21:53:00","modified_gmt":"2022-02-07T05:53:00","slug":"bcs-new-employer-health-tax-starts-january-1-here-are-3-things-every-employer-must-know","status":"publish","type":"post","link":"https:\/\/immixgroup.ca\/blog\/2018\/11\/07\/bcs-new-employer-health-tax-starts-january-1-here-are-3-things-every-employer-must-know\/","title":{"rendered":"<strong>BC\u2019s new Employer Health Tax starts January 1\u2013\u2013<br>Here are 3 things every employer must know<\/strong>"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"362\" class=\"elementor elementor-362\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ade7680 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ade7680\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b989bae\" data-id=\"b989bae\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5788fda elementor-widget elementor-widget-text-editor\" data-id=\"5788fda\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<div class=\"post-info\"><ul><li>By\u00a0<a href=\"https:\/\/www.immixgroup.ca\/employer-healthtax.html#\">Howard Cheung, Account Executive, Immix Group\u00a0<\/a>\/ November 7, 2018<\/li><\/ul><\/div><p>Many British Columbians welcome the abolishing of public healthcare premiums. They see the move as a huge step towards a truly free healthcare system.<\/p><p>But what are the potential cost impacts? Here are 3 things employers should note and prepare for.<\/p><p>\u00a0<\/p><p><strong>1. Companies with payrolls over $500K may have to pay\u00a0<\/strong><strong><em>both<\/em><\/strong><strong>\u00a0EHT and MSP premiums<\/strong><\/p><p>The NDP government announced that the Employer Health Tax (EHT) will come into effect January 1, 2019. The Medical Services Plan (MSP) premium will be removed January 1, 2020. This could mean that companies currently sponsoring MSP for their employees will have to pay the EHT while still budgeting for MSP. However, there will be no additional impact for small businesses with $500,000 or less in payroll.<\/p><p>\u00a0<\/p><p><strong>2. The actual cost calculation of EHT<\/strong><\/p><ul type=\"disc\"><li>\u00a0\u00a0\u00a0\u00a0<i class=\"fa fa-angle-right\"><\/i>\u00a0As mentioned, companies with a payroll of $500,000 or less will not pay EHT<\/li><li>\u00a0\u00a0\u00a0\u00a0<i class=\"fa fa-angle-right\"><\/i>\u00a0Companies with payrolls between $500,000 and $1,500,000 will pay tax at 2.925% above $500,000<\/li><li>\u00a0\u00a0\u00a0\u00a0<i class=\"fa fa-angle-right\"><\/i>\u00a0Companies with payrolls greater than $1,500,000 will pay 1.95% on their total payroll.<\/li><\/ul><p>\u00a0<\/p><p><a href=\"https:\/\/forms.gov.bc.ca\/taxes\/employer-health-tax-calculator\/\" target=\"_blank\" rel=\"noopener\"><strong>Here&#8217;s a handy quick calculator for you.<\/strong><\/a><\/p><p>Not surprisingly, many BC business owners are less than thrilled about the new tax. But keep in mind that many other provinces already have payroll taxes in place. The province with the highest payroll tax is Quebec, at 4.26%.<\/p><p>\u00a0<\/p><p><strong>3. Dividends are not included in the calculation of payroll for EHT\u2013\u2013but what is?<\/strong><\/p><p>The following are included in the calculation of EHT:<\/p><ul type=\"disc\"><li>Salary and wages<\/li><li>Bonuses, commissions and other similar payments<\/li><li>Vacation payments<\/li><li>Gratuities or tips paid through an employer<\/li><li>Taxable allowances and benefits<\/li><li>Directors&#8217; fees paid to directors of corporations<\/li><li>Amounts paid by an employer to <a href=\"https:\/\/immixgroup.ca\/blog\/index.php\/2021\/10\/29\/top-8-faqs-for-business-owners-when-implementing-an-employee-benefits-plan\/\">top up benefits<\/a> (e.g., top-ups for maternity or paternity leave)<\/li><li>Stock option <a href=\"https:\/\/immixgroup.ca\/blog\/index.php\/2021\/07\/13\/hybrid-traditional-flexible-employee-benefits-a-sample-design-for-smbs\/\">benefits<\/a><\/li><li>Employer-paid contributions to an employee&#8217;s Registered Retirement <a href=\"https:\/\/immixgroup.ca\/blog\/index.php\/2020\/10\/01\/business-owners-how-to-design-the-best-group-savings-plan-for-your-company\/\">Savings Plan<\/a><\/li><li>Employer-paid group life insurance premium.<\/li><\/ul><p>\u00a0<\/p><p>In cost terms, the new EHT will significantly affect many of our clients in a negative way. What are your own thoughts on the impacts? Is the upcoming change truly the next step towards 100% free public healthcare? We&#8217;d love to hear your views. And let us know if you have any questions!<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1f044ff elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1f044ff\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d020c49\" data-id=\"d020c49\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b66db0f elementor-widget elementor-widget-global elementor-global-227 elementor-widget-text-editor\" data-id=\"b66db0f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<script src=\"https:\/\/apps.elfsight.com\/p\/platform.js\" defer><\/script>\n<div class=\"elfsight-app-83f14fdc-92b5-4456-9af4-0934ad166639\"><\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-432256d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"432256d\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-top-column elementor-element elementor-element-9366b4c\" data-id=\"9366b4c\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bf3d9bc elementor-widget elementor-widget-global elementor-global-287 elementor-widget-image\" data-id=\"bf3d9bc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"640\" height=\"960\" src=\"https:\/\/immixgroup.ca\/blog\/wp-content\/uploads\/2026\/03\/Howard-683x1024.avif\" class=\"attachment-large size-large wp-image-1986\" alt=\"\" srcset=\"https:\/\/immixgroup.ca\/blog\/wp-content\/uploads\/2026\/03\/Howard-683x1024.avif 683w, https:\/\/immixgroup.ca\/blog\/wp-content\/uploads\/2026\/03\/Howard-200x300.avif 200w, https:\/\/immixgroup.ca\/blog\/wp-content\/uploads\/2026\/03\/Howard-768x1152.avif 768w, https:\/\/immixgroup.ca\/blog\/wp-content\/uploads\/2026\/03\/Howard.avif 1000w\" sizes=\"(max-width: 640px) 100vw, 640px\" title=\"\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-66 elementor-top-column elementor-element elementor-element-36b897c\" data-id=\"36b897c\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bf8ab1b elementor-widget elementor-widget-global elementor-global-290 elementor-widget-text-editor\" data-id=\"bf8ab1b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h3><span class=\"cert\"><a href=\"https:\/\/www.linkedin.com\/in\/howardch\/\" target=\"_blank\" rel=\"noopener\">Howard Cheung BBA<\/a><\/span><\/h3>\nEmployee Benefits Consultant, Immix Group: An Employee Benefits Company\n<strong>A<\/strong> <a href=\"https:\/\/www.google.com\/maps\/embed?pb=!1m18!1m12!1m3!1d2602.5699178039927!2d-123.12053598382099!3d49.28454617855886!2m3!1f0!2f0!3f0!3m2!1i1024!2i768!4f13.1!3m3!1m2!1s0x54867181f97930d5%3A0x9797e526e8704198!2s888%20Dunsmuir%20St%20%23450%2C%20Vancouver%2C%20BC%20V6C%203K4!5e0!3m2!1sen!2sca!4v1583124389424!5m2!1sen!2sca\" target=\"new\" rel=\"noopener\">Suite 450 &#8211; 888 Dunsmuir St. Vancouver V6C 3K4<\/a><\/p><p>\n<strong>Ph<\/strong> <a href=\"tel:6046885559\">604-688-5559<\/a><\/p>\n\n<p><strong>E<\/strong> <a href=\"mailto:info@immixgroup.ca\">info@immixgroup.ca<\/a><\/p>\n<p><strong>W<\/strong> <a href=\"https:\/\/www.immixgroup.ca\/\">www.immixgroup.ca<\/a><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>By&nbsp;Howard Cheung, Account Executive, Immix Group&nbsp;\/ November 7, 2018 Many British Columbians welcome the abolishing of public healthcare premiums. They see the move as a huge step towards a truly free healthcare system. But what are the potential cost impacts? Here are 3 things employers should note and prepare for. 1. Companies with payrolls over [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":94,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-362","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employer-health-tax"],"_links":{"self":[{"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/posts\/362","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/comments?post=362"}],"version-history":[{"count":10,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/posts\/362\/revisions"}],"predecessor-version":[{"id":578,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/posts\/362\/revisions\/578"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/media\/94"}],"wp:attachment":[{"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/media?parent=362"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/categories?post=362"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/immixgroup.ca\/blog\/wp-json\/wp\/v2\/tags?post=362"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}