Elimination of B.C. medical services plan premiums good news for employers

Many of our clients that employee BC employees have paid for the BC MSP premium (much as we did in Ontario with OHIP premiums many decades ago).  This obligation has now been removed.  On the other hand, an employer health tax similar to Ontario was introduced last year so employers are not 100% off the hook, but are avoiding the duplication.

British Columbians are ringing in the new year by joining all Canadians in not paying monthly rates for health care.

Premiums under the province’s medical services plan will be eliminated on Jan. 1, saving individuals up to $900 a year while families will pocket up to $1,800. The change comes two years after premiums were halved and a year after B.C. introduced an employer health tax of 1.95 per cent for businesses with a payroll above $1.5 million. Companies with a payroll under $500,000 were exempt from the tax, while those in between have paid a reduced rate.