2024 PROVINCIAL BUDGET HIGHLIGHTS

On February 22, 2024, the government of British Columbia announced changes to the provincial tax laws. The budget included the following key change affecting payroll: 

Employer Health Tax Exemption Increase 

The British Columbia 2024 Budget proposes adjustments to the Employer Health Tax including: 

  • An increase in the tax exemption threshold from $500,000 to $1,000,000, exempting employers with B.C. remuneration under $1,000,000 from the Employer Health Tax. 

  • A proposed increase in the tax rate from 2.925% to 5.85% for B.C. remuneration between $1,000,000 and $1,500,000. 

These proposed changes are set to take effect for remuneration paid from January 1, 2024, onwards.  

For remuneration exceeding $1,500,000 in a calendar year, the tax rate will continue to be 1.95%. 

Upon the enactment of these proposed changes, employers must reconcile their calculations in accordance with their first quarterly remittance of 2024. 

Remittance Installment payments are scheduled for the following dates: 

  • June 15, 2024 

  • September 15, 2024 

  • December 15, 2024 

See the Budget and Fiscal Plan to read a complete summary of all the tax changes for Budget 2024. 

The National Payroll Institute will advise its members about the progression of this new proposed legislation. 

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