Effective January 1, 2020, residents of British Columbia will no longer be required to pay Medical Service Plan (“MSP”) premiums. MSP premium debts owing prior to January 1, 2020 will still be owed, and collection will continue for any outstanding MSP premium debts.
Employers should ensure that their payroll processes are updated to discontinue any withholding or remittance of MSP premiums for employees for periods after 2019.
The elimination of the MSP premiums is related to the introduction of the employer health tax (“EHT”) for calendar years beginning on January 1, 2019. MSP premiums were cut in half in 2019 in connection with the introduction of the EHT and have been fully eliminated effective January 1, 2020.
Further details on the EHT are available in a newsletter published by D&H Group LLP on January 3, 2019. Read our January newsletter here: The New BC Employer Health Tax.News