The B.C. government has proposed a new employer-health tax as a step to eliminate the current Medical Services Plan (MSP), which they say will result in more than $50 million in administration savings annually.
Benefits such as registered retirement savings plan contributions and stock option benefits will be among other payroll components that will be taxed. Registered pension contributions, extended health benefits and retirement compensation arrangements will be among those not subjected to the new tax.
The new tax will be introduced to employers in January 2019. Find a full list of the implementation details here.
If you have any questions please contact your Accompass consultant.