
Employer Health Tax relief (EHT) BC
grant_single|update May 4, 2025
BC, Canada
Annual tax relief for employers based on payroll thresholds
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Government of British Columbia
grant_single|status
grant_card_status|open
grant_single_labels|preview
The Employer Health Tax relief (EHT) in British Columbia exempts employers with up to $1,000,000 in B.C. remuneration per year from the health tax and provides a reduced rate for those between $1,000,000.01 and $1,500,000, supporting the reduction of tax burdens related to employee payroll. This program is designed to assist eligible employers by reducing or eliminating the annual employer health tax based on total remuneration paid to employees.
grant_single_labels|terms_and_conditions
- Employers with B.C. remuneration of $1,000,000 or less are exempt from paying the employer health tax.
- Employers with B.C. remuneration between $1,000,000.01 and $1,500,000 are taxed at 5.85% on the amount exceeding $1,000,000.
- Employers with B.C. remuneration greater than $1,500,000 are taxed at 1.95% on their total B.C. remuneration, with no exemption.
- Associated employers must share the $1,000,000 exemption if their combined B.C. remuneration is $1,000,000.01 to $1,500,000; no exemption is available if combined remuneration exceeds $1,500,000.
- For part-year employers, exemption and threshold amounts are prorated based on number of days with a permanent establishment in B.C.
grant_single_labels|projects
grant_single|admissibleProjectsExample
$ 85,000
Launching a carbon neutral office retrofit for a marketing firm
$ 95,000
Upgrading manufacturing equipment for eco-friendly packaging production
$ 75,000
Installing accessible playground equipment for community inclusion initiative
$ 60,000
Expanding after-school STEM learning programs for underserved youth
$ 70,000
Developing an automated inventory tracking system for food banks
$ 47,500
Implementing a bilingual website for a newcomer service cooperative
grant_single_labels|admissibility
- The applicant must be an employer with remuneration paid to employees or former employees in British Columbia.
- The applicant may be an individual, corporation, partnership, trust, or government with a permanent establishment in British Columbia.
- The employer's total B.C. remuneration determines eligibility for exemption or for paying the employer health tax.
- Employers associated with others must consider total combined B.C. remuneration for exemption calculations.
- Employers that start or cease operation in the province within the calendar year must prorate the exemption and notch rate amounts based on days of operation in B.C.
grant_eligibility_criteria|who_can_apply
- Individuals acting as employers in British Columbia
- Corporations with employees in British Columbia
- Partnerships operating in British Columbia
- Trusts with employees in British Columbia
- Government entities with employees in British Columbia
- Charitable or non-profit employers in British Columbia
grant_eligibility_criteria|who_cannot_apply
- Joint ventures (as entities) are not considered employers for the purposes of the Employer Health Tax; only individual venturers are considered eligible employers.
grant_eligibility_criteria|eligible_expenses
- B.C. remuneration paid to employees and former employees within the calendar year.
grant_eligibility_criteria|zone
- British Columbia
grant_single_labels|apply
1
Verify eligibility and requirements
- Determine if your B.C. remuneration exceeds the $1,000,000 exemption
- Assess if you are considered an employer under the tax rules
- Review applicable rates based on your remuneration
2
Register for Employer Health Tax
- Register for the Employer Health Tax if your remuneration exceeds the exemption
- Complete registration by the specified annual deadline
3
Maintain remuneration records
- Keep records of total B.C. remuneration paid during the calendar year
- Gather necessary documentation for calculation and filing
4
Calculate tax payable
- Calculate your annual Employer Health Tax using the provided formula or online calculator
- Prorate exemption and notch amounts if you are a part-year employer
5
Make instalment and final payments
- Pay required instalments by the due dates: June 15, September 15, December 15
- Finalize payment before the annual deadline
6
File annual tax return
- File the Employer Health Tax return by March 31 following the tax year
- Submit all supporting documentation with your return
grant_single_labels|otherInfo
- The Employer Health Tax is deductible from business income for income tax purposes.
- Associated employers must share the exemption if their combined B.C. remuneration falls within the specified range.
- Joint ventures are not considered employers for the purposes of this tax; the responsibility lies with the venturers individually.
- Employers with a permanent establishment in B.C. for only part of the year must prorate the exemption and notch rate amounts based on the number of days present.
grant_single_labels|contact
ITBTaxQuestions@gov.bc.ca
1-877-387-3332
Apply to this program
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