Fraser Valley/ Victoria – People in BC will receive their last bill for Medical Services Plan (MSP) premiums in December 2019. The NDP government claims it is putting more money back into the pockets of British Columbians.
As of January 1, 2020, MSP premiums will be fully eliminated. Government took the first step towards elimination with a 50% cut in premiums as part of the Budget 2017 Update. Budget 2018 and Budget 2019 provided the road map to one of the largest tax cuts for middle-class British Columbians in B.C.’s history – full elimination of MSP premiums for British Columbians.
The elimination of MSP premiums represents a net tax cut of $800 million. Individuals will save up to $900 a year. Families will save up to $1,800 a year.
But bills still need to be paid, so this is not a free lunch.
The concern remains (for small business in particular) the “double Dipping” will continue for the rest of the year. Those businesses have to still pat MSP premiums until January as well Employer Health Tax as paying into the EHT – Employers Health Tax. As of January 1, 2019, the Employer Health Tax (EHT) was implemented in BC. Employers whose total annual payroll in BC is less than $500,000 will not pay EHT, and rates for employers with annual payroll greater than $500,000 are dependent on total payroll.
