BC Employer Health Tax (EHT)

Employers over the payroll threshold-rules vary for groups. BC EHT applies to employers whose annual payroll exceeds the EHT threshold, which varies depending on whether you're a single employer or part of an employer group. Single employers are subject to EHT if their annual payroll exceeds the threshold for single employers. Employer groups are subject to EHT if the combined annual payroll of all associated employers in the group exceeds the threshold for employer groups. The rules for determining associated employers and employer groups can be complex, involving factors such as common ownership, control relationships, and other connections between employers. We help assess whether you meet EHT thresholds as a single employer or as part of an employer group, and determine if registration and filing are required. However, threshold assessments depend on accurate payroll data and proper identification of associated employer relationships, so we provide guidance based on information you provide rather than guarantees of specific threshold determinations.

Yes-instalment schedules and reminders. We manage EHT instalment schedules, provide reminders for instalment due dates, and help ensure timely instalment payments throughout the year. EHT instalments are typically required if your estimated annual EHT exceeds certain amounts, and instalments are due at regular intervals throughout the year. We track instalment schedules, calculate required instalment amounts, and provide reminders before due dates to ensure timely payments. However, instalment requirements depend on your estimated annual EHT and provincial rules, so not all employers are required to make instalments. We help determine if instalments are required and manage schedules accordingly. Instalment management depends on timely information and payment processing, so we coordinate efficiently but cannot guarantee specific payment processing timelines. We work to ensure instalments are calculated correctly and paid on time to avoid penalties and interest.

EHT replaced MSP premiums for many employers in BC. BC Employer Health Tax (EHT) was introduced to replace Medical Services Plan (MSP) premiums that were previously paid by employers. EHT applies to employers whose annual payroll exceeds certain thresholds, and the tax is calculated based on payroll amounts rather than the number of employees covered. EHT replaced MSP premiums for most employers, though some employers may have transitioned from MSP to EHT at different times depending on their circumstances. The introduction of EHT changed how health care funding is collected from employers, moving from per-employee MSP premiums to payroll-based EHT. However, EHT rules and thresholds may differ from previous MSP requirements, so it's important to understand current EHT obligations. We help ensure you understand EHT requirements and comply with current provincial rules, but EHT obligations depend on your payroll amounts and employer group status rather than previous MSP arrangements.

Associated employers are employers that are connected through common ownership, control relationships, or other specified connections, and employer groups must combine payroll for threshold and calculation purposes. Associated employers include employers that are controlled by the same person or group of persons, employers where one controls the other, or employers connected in other ways specified by EHT rules. If employers are associated, they form an employer group, and the combined annual payroll of all employers in the group is used to determine if the group meets EHT thresholds. Group rules mean that if the combined payroll of all associated employers exceeds the group threshold, all employers in the group are subject to EHT, even if individual employers would not meet thresholds on their own. Group registration and filing coordination may be required, and group calculations can be complex. We help identify associated employers, assess group status, and ensure proper group calculations and filing coordination. However, group identification depends on accurate information about ownership, control relationships, and other connections, so we provide guidance based on information you provide. It's important to disclose all associated employer relationships to ensure proper group assessment and compliance.

Annual EHT returns are typically due within a specified period after the calendar year-end, and complete payroll data for the entire calendar year is needed for accurate calculation and filing. Annual EHT returns cover the calendar year and are due by a specific deadline after year-end, typically within several months of the calendar year-end. The exact due date depends on provincial rules and may vary, so it's important to be aware of filing deadlines. For accurate EHT calculation and filing, you need complete payroll data for the entire calendar year, including annual payroll totals, payroll records showing all employee compensation, payroll data for all associated employers if part of a group, and documentation of any payroll adjustments. Payroll data must be complete and accurate because EHT is calculated based on total annual payroll, and incomplete or inaccurate data can lead to incorrect calculations, underpayment, and potential assessments and penalties. We help ensure returns are filed on time and calculations are accurate, but timely filing and accuracy depend on receiving complete payroll data from you. It's important to provide complete payroll records promptly to ensure returns can be prepared and filed by deadlines.