The BC government has announced a new payroll tax for employers with payrolls of $500,000 or more, to take effect January 1, 2019. The new tax, similar to Ontario’s Employer Health Tax, is designed to offset the elimination of Medical Services Plan (MSP) premiums effective January 1, 2020.
We don’t yet have all the details, which the government has said it will roll out over the next year, but the rate structure has been announced as follows:
- Employers with payrolls under $500,000 are exempt from the tax.
- Employers with payrolls over $1.5 million will pay a rate of 1.95%.
- Employers with payrolls between $500,000 and $1.5 million will pay a “reduced rate”.
This tax will come as an additional expense for employers with payrolls of $500,000 or more who did not previously offer to pay employees’ MSP premiums.
Keep an eye on this spot for more information as it becomes available.