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:
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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.
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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:
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June 15, 2024
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September 15, 2024
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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.