BC Employer Health Tax (BC EHT)

Dayforce Implementation Guide

Version
R2025.1.1
BC Employer Health Tax (BC EHT)

The British Columbia Employer Health Tax (BC EHT) is payable by employers on the earnings of their BC employees when total BC employee earnings exceed the yearly exemption limit.

The remittance requirements for BC EHT specify that employers must pay this tax in equal quarterly installments that are based on an estimate of the total earnings for BC employees for the year. If the amount of tax paid based on the estimate is lower than the actual amount owing, the outstanding amount is subject to interest.

These remittance requirements are different from those of other Canadian provincial health taxes for which installment amounts vary and are based on the actual tax calculated during the installment.

Important: Because the installments of BC EHT are based on estimated earnings and require equal installments, Dayforce does not support the calculation or remittance of this tax and only supports the tracking of taxable wages. This means that you need to calculate and remit this tax to the BC government outside of Dayforce.

While the application does not calculate or remit this tax, you still need to update the tax details in Dayforce to track taxable wages. Dayforce provides the tax value BC EHT in the Tax Authorities tab for Canadian legal entities in Org Setup > Org Payroll Setup > Legal Entity. The tax authority number for BC EHT is 1011000020.

In the Company Tax ID Number column for this tax, you need to record the BC tax account number for the legal entity. If the legal entity doesn't have a BC tax account number, you can enter EHT-9999-9999 as a placeholder.

In the Tax Setting section for this tax, you need to create a record with effective start and end dates covering the year. As is the case with other health taxes, you need to create a tax setting record each year.

If you select the Exempt Tax and Taxable Wages checkbox in the record, the application does not track taxable wages. It is a best practice to leave this checkbox cleared so that you can monitor whether the legal entity is nearing or over the exemption limit for the tax, and to ensure the estimated installment amounts do not fall below the actual tax owing.

Because the application does not calculate this tax, the Exemption Allocation, Exemption Amount and Gross Annual Payroll parameters of the record are non-editable.

Information about Calculating Tax Installments

  • You can calculate the tax installments using the health tax calculator on the BC government website: https://forms.gov.bc.ca/taxes/employer-health-tax-calculator/.
  • In this calculator, you need to enter an estimate of total BC earnings based on the lesser of the following:
    • the previous year's tax
    • estimated tax for the current year
  • You can obtain the BC earnings recorded in Dayforce for the previous year by running the Payroll Summary Report. Group the report by work province and run it for the relevant legal entities. In the report, the Gross to Net section for BC displays the total earnings.
  • You need to monitor the taxable wages of the BC EHT tax in Dayforce for the current year to ensure that the estimated earnings that are used to calculate the installment do not fall below the actual earnings. This will allow you to avoid interest fees for extra amounts owing. You can monitor this by running the Payroll Summary Report. Group the report by work province and run it for the relevant legal entities. In the report, the Tax Expense Summary section for BC displays the limited taxable wages for BC EHT.

More information about BC EHT is located on the BC government website: https://www2.gov.bc.ca/gov/content/taxes/employer-health-tax.