Government of British Columbia introduces new Employer Health Tax
Effective January 1, 2019 it is proposed that employers with annual payrolls of over $500,000 for employees working in BC will be subject to a new Employer Health Tax. This is to make up for the revenue shortfall of the recent MSP premium reductions.
While there are questions on how this will affect employers from what I am reading, this is expected to exclude approx. 85% of employers in BC.
Here are examples of what I am seeing would be excluded:
• 10 or less staff (assuming an average annual income of $50,000
• 20 staff making an average of $12 per hour
• 16 staff making $12 per hour + owner taking $100,000
• 8 staff making $24 per hour / $50,000 per year + owner taking $100,000
• 5 staff making $75,000 annual + owner taking $125,000
Based on conversations we have been having with some employers that will be affected, I think there may be a push to create more contractor positions.
Here is a link to more information: British Columbia Government – Employer Health Tax Notice
Download the British Columbia Ministry of Finance – Employer Health Tax Notice
