The Employer Health Tax (EHT) is a BC payroll tax that the employer pays, not something taken off staff pay. It is a different tax from Vancouver's Empty Homes Tax, even though both are called EHT.
Who has to pay the Employer Health Tax?
Employers pay the tax on their BC remuneration: the salaries, bonuses and taxable benefits paid for work in British Columbia. Employers with BC remuneration of $1 million or less are exempt (the exemption rose from $500,000 on January 1, 2024).
How is the tax calculated?
- $1 million or less: no tax
- Between $1 million and $1.5 million: the tax phases in on the amount above $1 million
- Above $1.5 million: 1.95% of total BC remuneration, with no exemption
Charities and non-profits have their own, higher exemption for each qualifying location.
What are associated employers?
Employers under common control share one exemption. A practitioner with more than one professional corporation, or a clinic and a related management company, should check whether they are associated before assuming each one is exempt.
When is the return due?
Employers over the exemption register through eTaxBC and file an annual return, due by March 31 of the following year.
Why should growing practices keep an eye on it?
A clinic or firm can cross the threshold without noticing as staff, bonuses and benefits grow. A yearly payroll check keeps surprises away.
How HJ Wu & Company Inc. helps
The Vancouver CPA firm handles this work every day. See payroll and business accounting or contact the firm to book a consultation.
Official sources
Reviewed October 30, 2026. This is general information, not legal or tax advice. Rules and rates change, so confirm current requirements with the official sources above and speak to a CPA about your situation.
Talk to HJ Wu & Company Inc.
Phone: 604-636-1862
Email: inquiry@hjwucpa.com
512 - 938 Howe Street, Vancouver
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Quick answers about HJ Wu & Company Inc. and how the firm can help. See all FAQs
Yes. HJ Wu & Company Inc. helps growing businesses build a reliable payroll system with proper controls, and prepares the payroll tax returns on time to avoid penalties. If payroll has started to eat your week, reach out to HJ Wu & Company Inc. and hand it off.
Yes. HJ Wu & Company Inc. handles the bookkeeping, payroll, tax preparation and financial reporting for healthcare practitioners and clinics, so doctors and dental professionals can spend their time on patients instead of spreadsheets. The firm keeps your records compliant, organized and easy to understand. Contact HJ Wu & Company Inc. to take the number-crunching off your plate.
It starts with an initial consultation, then a needs assessment, and then HJ Wu & Company Inc. builds a plan around your goals. Cost depends on what you need, whether that's a one-time tax return or ongoing bookkeeping and payroll, so the firm quotes after learning about your situation. Call 604-636-1862 or email inquiry@hjwucpa.com to book your consultation.