British Columbia new health tax

[former_member645605]

Hi experts

BC government has announced a new employer health tax for 2019 based on the following link:

https://www2.gov.bc.ca/gov/content/taxes/employer-health-tax/employer-health-tax-overview

According to SAP, for the moment they don't plan to include it in year tax updates; have any of you started working on a solution? I understand it's going to be similar to the one in Ontario.

Thanks in advance!

[former_member499909]

2725988 - TAX: Employer Health Tax - Province of British Columbia - Effective January 2019

Available December 7th? Note is still being created.

http2725988 - TAX: Employer Health Tax - Province of British Columbia - Effective January 2019s://launchpad.support.sap.com/#/solutions/r/?type=note&route=notes&pos=0&p=%7B%22note%22%3A%222725988%22%7D&searchTerm=2725988&filters=[[{%22attribute%22:%22themk%22,%22operator%22:%22EQ%22,%22low%22:%22PY-CA%22,%22high%22:%22%22}]]&sorter=score

[former_member193210]

The Note was released. See: https://launchpad.support.sap.com/#/notes/2725988

[altruismconsulting]

This is a mystery to all SAP customers in BC, since SAP already has most of the configuration and tax engine in place to accomplish this. Infotype 461 has a field to specify the province of Employer Health Tax. Technical wage types for BC are missing and the configuration in T5KVE is required... Customer configuration would involve setting PCR 65 and setting up Posting.

https://wiki.scn.sap.com/wiki/display/ERPHCM/Health+Tax

Did the BC Government not put this into law soon enough to ensure SAP had time to extend the solution to the Province of BC?

[former_member645605]

Thanks for your comment Alan

In last week's SAP webcast about 2018 year end for Canada they mentioned they could work on some solution for companies with remunerations over $1,500,000 that would pay the fix rate 1.95%, but that would be all as the new tax is based on remunerations and payroll can't calculate/estimate them for the complete year. SAP also mentioned they are still waiting for more information from government to see what else can be done.

B.C. EHT was announced by government in Feb this year.

So far, we have thought tax calculation and remittance will be done outside SAP using payroll remunerations from it as it's almost December and we have no more news from SAP

I have seen ON EHT is very similar, based on employer remunerations ($200,000 to $400,000) and there is a process in place in SAP payroll. Why they can't do the same for BC?