GroupGroupBuck_BondGroup

Changes to British Columbia Provincial Healthcare Premiums

by and Tags: ,

Volume 18 | Issue 2

pdf icon Download this FYI as a printable PDF

British Columbia has announced that they will discontinue the current premium for provincial healthcare, the Medical Services Plan (MSP), effective January 1, 2020, and they are implementing a payroll tax in its place effective January 1, 2019.

Background

Currently BC funds healthcare through an annual premium of $450 per adult with an annual adjusted net income over $42,000. This was reduced effective January 1, 2018, when the premium for children was eliminated and the adult premium was cut in half. Most employers pay this premium on behalf of their employees.

Effective January 1, 2019, employers with BC payrolls over $1,500,000 will be subject to an employer health tax of 1.95%. Payrolls of $500,000 to $1,500,000 will be subject to a graded amount between 0.98% and 1.95%. Employers with BC payrolls under $500,000 will not be subject to the employer health tax.

The MSP premium continues to apply through 2019 in addition to the employer health tax, but it will be eliminated January 1, 2020.

In Closing

Look for more details about the employer health tax before its January 1, 2019, implementation.

Related insights

NYC amends paid sick leave law

New York City amended its Earned Safe and Sick Time Act effective September 30....

Read more

IRS extends deadline for 2020 employer ACA disclosures

The IRS has extended the ACA deadline for furnishing Forms 1095-B and 1095-C to individuals...

Read more

COVID-19: Ontario provides defined benefit pension funding relief

This FYI discusses the Ontario Regulation 520/20 (Regulation), which was filed September 21, 2020...

Read more