The Employer Health Tax (EHT) is an annual payroll tax that came into affect on Jan-01-2019. It is separate from the existing MSP premiums and current payroll source deductions. The EHT is based on remuneration paid to employees who report for work at or are paid from/through a permanent BC establishment.
Employers with BC remuneration above the exemption amount of $500,000 in a calendar year must register for the EHT to receive an account number AND then enrol for access to eTaxBC in order to manage the EHT account ie: file returns and make payments online. Employers who are required to pay the EHT in 2019 and who already pay MSP premiums for their employees, are required to pay both for the 2019 calendar year.
Effective Jan-01-2020 – there are no more MSP premiums.
The EHT is deductible from business income for income tax purposes.