The BC Government released the Employer Health Tax Act on October 16, 2018. This new act will require employers (special rules are granted to registered charities and not-for-profit organizations – see below) with payroll higher than $500,000 within a calendar year to register and pay a tax effective January 2019.
If your BC remuneration is below $500,000 you will not be affected. Those with payroll between $500,000 and $1,500,000 are required to pay a rate based on the following formula:
2.95% x (BC remuneration in excess of $500,000)
Registered charities and not-for-profit organizations will calculate their EHT based on each qualifying location. Qualifying locations are eligible for an exemption of $1,500,000.
Registered charities and not-for-profit employers that are taxable will need to register for an EHT account using eTaxBC. Filing of your EHT must be done by March 31 in the following calendar year.
For more information on your tax requirements, we would be happy to discuss with you.