Employer health tax in British Columbia
British Columbia exempts the first $1,000,000, then applies a 5.85% notch rate: and above $1,500,000 the exemption vanishes and 1.95% applies to total remuneration.
Behind the numbers.
Between $1,000,000 and $1,500,000 the notch rate of 5.85% applies to the amount over $1,000,000 only.
Above $1,500,000 the calculation changes shape entirely: there is no exemption, and 1.95% applies to TOTAL B.C. remuneration rather than the excess. Crossing that line costs considerably more than the marginal dollar suggests, and treating it as an excess calculation understates the tax badly.
Charitable and non-profit employers are on a separate set of rules with their own thresholds.
The threshold applies to an associated group of employers, not to each corporation separately: splitting payroll across two companies you control does not buy two exemptions.
comma does not run payroll. It takes the journal your payroll provider produces and keeps the resulting liabilities: including this one: in accounts you can reconcile, so what you owe is a balance rather than something rebuilt at year end.
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