Important Update: Changes to BC Employer Health Tax (EHT) Threshold
Dear Valued Client,
We hope this message finds you well. As your trusted CPA, we want to keep you informed about recent changes that may impact your business. Starting in 2024, the British Columbia government has adjusted the Employer Health Tax (EHT) threshold, affecting businesses across the province.
What’s New?
The EHT threshold has been increased from $500,000 to $1,000,000. This means that businesses with annual remuneration below $1 million are exempt from paying the EHT. If your business falls within this range, you will no longer be required to remit EHT payments.
Action Steps:
Review Your Payroll: Take a moment to review your payroll records and ensure that your annual remuneration remains below the new threshold. If it does, congratulations! You’re exempt from EHT.
Update Your Records: Update your financial records to reflect this change. Make sure your accounting software or payroll system reflects the adjusted threshold.
Communicate with Your Accountant: If you have any questions or need assistance, don’t hesitate to reach out to us. We’re here to help you navigate these changes and ensure compliance.
Why Is This Important?
Understanding the EHT threshold is crucial for your business’s financial planning. By staying informed, you can optimize your tax strategy and allocate resources effectively.
Need Further Assistance?
As always, our team is available to answer any questions you may have. Feel free to contact us via email or phone, and we’ll be happy to assist you.
Thank you for entrusting us with your financial matters. We appreciate your continued partnership.
Sincerely,
Milestone Consulting Inc.
T: 778-802-8399
Coco is a seasoned Canadian CPA with over a decade of experience as a controller and CFO for companies operating in both Canada and the U.S. As the founder of Milestone Consulting Inc., Coco specializes in Fractional CFO services, business loan consulting, and AI-driven financial system setups. Passionate about helping businesses achieve financial clarity and efficiency, Coco shares insights on corporate finance, tax planning, and business strategies through this blog.