VICTORIA, B.C. – The Ministry of Finance says it has released a tax notice for the upcoming Employer Health Tax as part of the process of eliminating Medical Services Plan premiums in B.C.
The tax notice includes implementation information on effective rates, calculation and scheduling, remuneration, payroll definition, rules regarding instalment payments, locational and threshold rules for non-profits, and other technical implementation details.
“Our government is working hard to make life more affordable for people in our province. We are proud to be eliminating regressive MSP premiums, and returning up to $1,800 each year to families across our province,” said Carole James, Minister of Finance. “While other provinces scrapped MSP premiums, the former government doubled and downloaded these unfair fees onto middle-class individuals, families, and seniors. Replacing MSP premiums with the EHT follows the lead of other provinces, and is a much fairer and progressive approach.”
The NDP government reduced MSP premiums for B.C. residents by 50 percent on January 1st, a continuation of a plan announced by the previous Liberal government. The government says that after the new Employer Health Tax is rolled out on January 1st next year, MSP premiums will be completely eliminated on January 1st, 2020.
The provincial government says that administrative savings from eliminating MSP premiums will total over $50 million annually and that 96 percent of Employer Health Tax revenue will be paid by the largest five percent of employers. The highest rate of 1.95 percent will make B>C. tied with Ontario as having the lowest payroll tax in Canada.
A full list of the implementation details can be found at the Ministry of Finance’s EHT tax notice here: www.gov.bc.ca/EmployerHealthTax