To mitigate the revenue loss, the government will implement a new employer health tax
one year earlier, on Jan.
A key policy announcement in B.C.'s 2018 budget is the elimination of Medical Services Premiums (MSP) in 2020 and introduction of a new payroll tax--the employer health tax
See also: The big political debate over the Employer Health Tax
The GAO attempted to determine (1) the extent to which the credit was claimed and factors limiting claims, (2) how the IRS was ensuring that the credit was correctly claimed, and (3) what further data were needed to evaluate the credit's effects (Small Employer Health Tax
Credit: Factors Contributing to Low Use and Complexity, Rep't No.
General Accountability Office, 2012, Small Employer Health Tax
Credit: Factors Contributing to Low Use and Complexity, GAO-12-549 [accessed on September q, 2012].
In 1989, Ontario discontinued the collection of OHIP premiums and adopted an Employer Health Tax
. Despite this, however, many collective agreements have maintained references to OHIP health premiums being wholly or partly paid for by an employer.
There may also be other implications (e.g., Employer Health Tax
in Ontario) depending on the province(s) where the employer has a permanent establishment.
Under the plan, eligible businesses locating in a tax incentive zone would not be required to pay the provincial business education tax, capital tax or employer health tax
. Municipalities would be required to contribute to the program by providing full municipal property tax relief for all eligible businesses, as well as case-by-case assistance on municipal charges and fees.
Under the plan, eligible businesses relocating to Northern Ontario and existing businesses with plans to expand would not be required to pay provincial business education tax, capital tax or employer health tax
. The province is already planning on eradicating the capital tax with the first 10-per-cent cut on January 1, 2004.