​Government Advocacy Win: Employer Health Tax Reduction in Effect for 2025
​Government Advocacy Win: Employer Health Tax Reduction in Effect for 2025
Employer Health Tax returns are due by March 31, but this year many businesses will finally see some tax relief!
In a major win for the Langley Chamber, the exemption for the Employer Health Tax was raised last year to $1,000,000 meaning businesses with less than that in payroll are now exempt.
Since it was introduced 6 years ago, the Langley Chamber has been a leading voice in pushing against this new tax on employers, and we are pleased to see savings now being realized by businesses.
Businesses will now save up to $14,628 a year, and more businesses are now exempt from the tax entirely. Businesses with payroll between $1 million and $1.5 million will see some savings as a result as well, but that phases to zero at $1.5 million in payroll. This is real money that we've long argued could be put to better use in your businesses than in government coffers.
The EHT is a $3 billion+/year tax on business, and as a payroll tax, it hits businesses when they grow and create jobs. For years, the Langley Chamber has strongly advocated against the EHT, and in particular, during the recent period of wage inflation we said the time was right for the exemption to be increased.
Over the years, the Langley Chamber has authored policy papers about increasing the EHT threshold, we've met with various Finance Ministers, Deputy Ministers and government staff to push for the change, done media appearances on its negative impact, and included the EHT in countless of our submissions and consultations with the government.
This is a great example of the type of pro-business change the Langley Chamber and the chamber of commerce network can achieve, and it is why advocacy and championing the needs of business is so critical to our mission.
About the Employer Health Tax
Businesses with BC payrolls of over $1,000,000 are required to register and pay the Employer Health Tax. If you exceeded that threshold in payroll in 2024, you must be registered for the EHT, and file an annual return by March 31, 2025.
Depending on the tax owing, you will submit your payment then, or be required to make installment payments in June 2025, September 2025, December 2025, and then again when you file your EHT return in March 2026.