On April 25, 2024, the government of British Columbia enacted Bill 3 to increase the Employer Health Tax. Subsequently, on May 29, 2024, updates were made to the B.C. government website affirming the following adjustments:
- 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.
- An increase in the tax rate from 2.925 per cent to 5.85 per cent for B.C. remuneration between $1,000,000 and $1,500,000.
These changes take effect for remuneration paid from January 1, 2024.
Employers are encouraged to utilize the employer health tax calculator to help them estimate the tax.
For remuneration exceeding $1,500,000 in a calendar year, the tax rate remains fixed at 1.95 per cent.