On October 16, 2018, Bill 44, the Budget Measures Implementation (Employer Health Tax) Act, 2018 (“Bill 44”), had its First Reading in the Legislative Assembly of British Columbia.
Bill 44 imposes a tax on the remuneration paid by employers to or on behalf of, employees who report for work in British Columbia. The tax is proposed to commence on January 1, 2019.
The tax rate varies based on the total remuneration paid by an employer in British Columbia in a calendar year. Employers who pay less than $500,000 in remuneration in British Columbia are exempt from the tax. Employers who pay more than $500,000 but less than $1,500,000 are taxed at a rate of 2.925% of the amount by which the B.C. remuneration exceeds $500,000. Otherwise, tax is paid at a rate of 1.95% of total BC remuneration. Special provisions apply for charitable and non-profit employers. Bill 44 also prorates these thresholds for employers who have a permanent establishment in British Columbia for only part of a calendar year.
We will continue to monitor the progress of Bill 44. The full text of Bill 44 as presented at First Reading is available on the Legislative Assembly’s website.
For more information about Bill 44, please contact Nicole Toye.