FormerMember

BC EHT

Posted By FormerMember

I have set up the new BC's EHT (Employee Health Tax) in Sage as per Sage instructions ID 14141 & ID 95030 in our company test file and when I input an employee payroll there is a EHT Expense & EHT Payable based on the 2.925% of Gross salary. The EHT has an exemption amount of $500,000 between all associated companies, in our case we have two associated companies. Does Sage take into consideration the exemption? If yes, where do I see the exemption amounts and how do I split the exemption between two companies? For 2019, the EHT is based on 2018 wages so I haven't set it up in Sage for 2019 but I would like to use it in 2020 if it is appropriate and accurate, if not is Excel the better way to calculate the quarterly payments? 

  • 0

    HGA:

    From what I understand it does not take into consideration the EHT exemption. I would monitor the wage expense when you get close to the exemption level and start remitting at that point. To calculate the quarterly payments look at the wage expense account when you get to the exemption amount and manually calculate the amount above the $500k exemption. For the split between the 2 companies I would use a ratio if their wages are significantly higher or lower than each other E.G. 1st company $750k vs $900k for the 2nd, so $750/$1650 for 1st and $900/$1650 for the 2nd.

    I hope this answers your question.