Victoria – The employer health tax is the new annual tax on an employer’s B.C. remuneration paid to employees and former employees in a calendar year beginning on January 1, 2019. This is to replace the MSP program which is in the process of being phased out.
The first installment payment from businesses was due June 15. British Columbia businesses will have to swallow the province’s new Employers Health Tax (EHT) as well as the outgoing MSP.
The new tax is being put in place to cover the costs of Medical Service Plan premiums, but those MSP premiums don’t go away until January 1, 2020.
The concern is that this is double-dipping for the Province. Many bueinesses have wondered aloud that the extra cost will not allow them to hire extra staff, as those dollars won’t be available to increase staff.
