The BC EHT is an employer health tax set up by the BC government to help fund health care infrastructure in BC. It has no direct implications to payroll (it does not impact employee pay in any way), however, it will impact a company’s remittances to the government. To assist your company in determining how much money to remit to the government, we have created a Vendor Remittance Report that will track earnings of BC employees and generate a BC EHT remittance value.
This vendor remittance report can be run per pay period, or directly before your remittance date. Some clients may wish to run the report more frequently to track their expenses - allowing for appropriate budgeting of the new Health Tax.
Note: The Avanti Best Practice for BC EHT remittances is to use our Vendor Remittance report specific for EHT. Some clients may wish to set up a benefit code to track the expenses directly to a G/L for their finance department. This can be done at a client’s discretion and can be used in conjunction with the BC EHT Vendor Remittance report if desired.
If you have any questions on the legal requirements of BC EHT remittances, please contact the government body associated with the remittance.
Installing the Vendor Remittance Report
When installing your BC EHT Remittance Report, there are two available files attached to this article (one for each payroll threshold). The first is if you anticipate your payroll to be between $500,000 and $1,500,000 in 2019. The second is if you anticipate your payroll to be over $1,500,000. Please only import the one that you anticipate using.
Note: If your business operates as a not-for-profit or a charity, the BC government has outlined other thresholds and tax rates for your business. Please consult the BC EHT - Changing Payroll Thresholds article for more information on how to change your remittance report to reflect this.
In order to import the Vendor Remittance Report, navigate to the Vendor Remittance Setup menu item, located by default in Canadian Payroll>Installation & Maintenance>Vendor Remittance Setup.
After selecting ‘Import’, select the file with the appropriate payroll threshold, and import the report. Once the report has been imported, you can open the report and adjust any information as required. By default it should appear as below:
Using the Vendor Remittance Report
Once the Vendor Remittance Report has been inserted in the Setup menu, you will be able to begin running the report. To do this, navigate to the Vendor Remittance menu item located by default under Canadian Payroll>Payroll Reports>Vendor Remittance.
After double-clicking on the appropriate report, you will see a window similar to the following that will give you a high-level view of what each remittance should be:
For further details on what contributes to each remittance, click on the ‘details’ button for the appropriate Remitter Date. This will give you a per-pay run breakdown of your BC EHT Remittances.
Clicking on ‘details’ again will give you a per-employee break down of your remittance for that pay run.
Note: The BC EHT remittance report is set to calculate from Gross Earnings (G0). Gross Earnings are calculated as all Earning Codes that are not type ‘Other’ and all taxable benefits. If you have taxable benefits that you do not want to be included in your remittance report calculation, you will be required to set up a new earning base for the report. For more details on how to set this earning base up, please view the ‘Creating a Source Code Group in a Remittance Report’ document.
If you have earnings that are not applicable to the BC EHT but are part of your Gross Earnings, you may wish to create a benefit code to track the expense. A new accumulator specifically for the BC EHT will be required during this setup.