New Year Brings New Health Tax for BC Employers

British Columbia is all set to start charging its business with new Employers Health Tax (EHT) from Jan. 1, 2019. The tax applies to businesses that have an annual payroll expense of more than $500,000.

The provincial government said that the tax is being put to cover the costs of Medical Service Plan premiums.

“The Employer Health Tax will have a cascading effect across the province” said Kris Sims, B.C. director of the Canadian Taxpayers Federation. He further said that imposed tax will slowdown new hiring and pay raises.”

Business are set to be hit hard by this new health tax and fears increase in property tax across the province, says a tax consultant and subject expert.

Jan. 1 also brings in the new school tax by virtue of which Homes worth more than $3 million will pay a higher rate.