British Columbia employer health tax (BC EHT)

British Columbia Employer Health Tax (BC EHT) is a health tax that was introduced in 2019. It is payable by employers on BC remuneration.

BC EHT is payable when an employer’s total BC remuneration (including amounts paid by Associated Employers) is greater than the $500,000 exemption amount.

Charities are subject to unique requirements.

Note:

Unlike other provincial/territorial health taxes, BC EHT is not based on current BC earnings as they are paid. It is based on the BC Remuneration from the prior year or an estimate of the current year’s BC Remuneration.

Another important difference is that Dayforce does NOT remit this tax to the BC government. The calculation, remittance and annual reconciliation of BC EHT are the responsibility of the employer.

Tax Rates for Employers with B.C. payroll:

  • $500,000 or less: no EHT
  • Between $500,000.01 and $1,500,000: 2.925% x (Payroll - $500,000)
  • Greater than $1,500,000: 1.95% on total payroll

If you have employees in British Columbia, you are responsible for completing and filing your BC EHT annual return by April 2, 2024 and for making all tax payments. Dayforce does not remit BC EHT on behalf of employers.

Special Considerations

Employers can review their Earnings and Deduction/Benefit Matrix and Year End reports to verify that the taxable T4/T4A income of BC employees has been included. The BC Ministry of Finance web site lists included and excluded remuneration.