NEW Employer HEALTH tax

Tax Question:

What is the new Employer Health Tax?

Facts:

The 2018 budget released by the BC government will eliminate Medical Services Plan (MSP) premiums effective January 1, 2020 and provide funding for MSP through a new employer health tax.

Discussion:

Currently there is MSP premium assistance available only to those households who qualify as low income households. That means all middle and high income earners pay the same MSP premiums currently. These premiums have been reduced as of January 1, 2018 and will be eliminated entirely as of January 1, 2020. To replace the current MSP premiums system, the Province of BC is implementing a new payroll tax called the Employer Health Tax (EHT) as of January 1, 2019. This new payroll tax will be calculated to a maximum of 1.95% of total payroll.

Commencing January 1, 2019:

• Businesses with annual payroll under $500,000 will not pay the tax.

• Businesses with annual payroll between $500,000 and $1.5 million will pay a reduced tax rate of 2.925% on total payroll less $500,000 exemption.

• Businesses with annual payroll of more than $1.5 million will pay a rate of 1.95% on their total payroll.

The Province of BC has announced that it will assess the tax on payroll for corporate groups. The associated companies will be grouped together to determine the annual payroll to prevent corporate owners from spreading their payroll among several companies to get under the $500,000 threshold and avoid paying the EHT. The $500,000 exemption amount is prorated if none of the employers in the associated group had a permanent establishment in BC throughout the calendar year.

Dawn Loeffler, (Hons), CPA, CA Manager, Gilmour Group CPA’S

Email: faqs@gilmour.ca Disclaimer: The information contained in this article is intended

BA solely to provide general guidance on matters of interest for the personal use of the reader, who accepts full responsibility for its use. While we have made every attempt to ensure the information contained in this article has been obtained from reliable sources and accurately described herein. SW that all businesses need, and if you know anything about business expenditures, you know that companies toss money around more frequently than private individuals. Review different systems and write articles about phone etiquette.

Degree: $40 CPC. Everybody (and their grandmother) is going back to school these days, and usually online. Capitalize on education and write some degree-related blogs.

Credit: $38 CPC. Canadians (and increasingly everyone else) love spending with plastic. Write reviews of the best cards, or articles on how to build credit.

Your Take Away

The content marketing you’re doing for these businesses doesn’t have Media Group and Gilmour Group Incorporated is not responsible for any errors or omissions, or for the results obtained from the use of this information. Before taking any action that might affect your personal and business finances, you should consult a qualified professional advisor. to be free. After you’ve built some traction on your site, you can start selling your content to the businesses you’re writing about…it will prove to be an additional source of revenue, and if their Google ads are any indicator, they’re willing to spend.

Watch for my upcoming book “The Content Marketing Blueprint” where I deep dive into Content Marketing and how you can use it in your business.

To all my readers I wish a “Kool Yule and a “Frantic First”. Best season wishes

Bob Milliken is a master marketer specializing in helping businesses achieve outrageous levels of success. Bob can be reached by phone at 604.270.1730 or by email at thenaughtymarketer@rfmholdings.com