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What is The BC Employer Health Tax (EHT)?

April 23, 2019

Tax Question:

What is the BC Employer Health Tax (EHT) and am I required to remit?


The EHT is a new annual tax in BC based on your company’s payroll for the calendar year. This new tax commenced on January 1, 2019.


If your payroll is less than $500,000 annually, then you are exempt from registering and paying the EHT but, if your payroll is greater than $500,000 in a calendar year then you are required to pay this tax as follows:

  • Payroll between $500,000.01 and $1,500,000 will be taxed at a rate of 2.925% but only on the payroll that exceeds the $500,000 exemption. The formula would be as follows:2.925% x (PayrollÑ$500,000)
  • Payroll over 1,500,000 will be taxed at 1.95% for the total annual payroll

If you begin or cease to have a permanent establishment in BC during the calendar year then your exemption will be prorated. Enrolment is through etaxBC. If you have a BC provincial sales tax (PST) # and are enrolled through etaxBC then you are registered for online services and just need to add your EHT account. Instalments are required if your payroll exceeds $600,000 in a calendar year. If instalments are required then you must register for your account by May 15, 2019 otherwise registration can be completed by December 31, 2019. The first instalment will be due June 15, 2019. The threshold for instalments is increased to $1,600,000 for charitable and non-profit employers. If you are an employer with associated companies, then you must look at the whole payroll for the associated groups. 

If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.

Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.

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