The employer health tax is an annual tax on an employer's B.C. Remuneration paid to employees and former employees in a calendar year beginning on January 1, 2019.
The employer health tax is based on the remuneration an employer pays to their employees and applies to employers with B.C. Remuneration.
An employer’s B.C. Remuneration includes the total of the following:
B.C. Remuneration doesn’t include any remuneration paid to employees who report for work at a permanent establishment of the employer outside B.C. for all or substantially all of the calendar year.
The residence of an employer’s employees is irrelevant in determining whether an employer has B.C. Remuneration.
Employers with B.C. Remuneration:
Employers that either begin or cease to have a permanent establishment in B.C. in a calendar year are required to pro-rate the exemption amount and the notch rate amount as follows:
You’re required to pay instalments in a calendar year if the employer health tax amount you must pay was greater than $2,925 for the previous calendar year. If the employer health tax amount you must pay is less than $2,925 you can choose to pay in instalments or make one payment when you file your employer health tax return for March 31.
If an employer is required to make instalments for a calendar year, instalments are calculated as 25% of the lesser of:
An employer that is new to B.C. and starts to have a permanent establishment in B.C. in 2019 or a later calendar year is not required to make instalments for that year.
For example, if an employer starts to have a permanent establishment in B.C. in 2020, the employer will not be required to make instalments for the 2020 year. The employer may be required to make instalments for the 2021 year if the employer’s employer health tax amount is greater than $2,925 for the 2020 calendar year.