BC EHT annual return: the 2026 return is due March 31, 2027

Which BC EHT dates apply to the 2026 year?

The 2026 BC employer health tax return is due March 31, 2027, and any balance is payable with it. When March 31 falls on a weekend or a BC statutory holiday, the return and payment move to the next business day; in 2027 it is a Wednesday, so no shift www2.gov.bc.ca.

The Employer Health Tax Act sets the March 31 return date in s. 32(3), the December 31 registration date in s. 31(1) and the three instalment dates in s. 41 bclaws.gov.bc.ca. A registered employer that owes nothing for the year but may owe later should file a nil return by March 31 to keep the account active. To close the account, file a final return by March 31 of the year after the last year your client had a BC permanent establishment www2.gov.bc.ca.

Whether your client owes the tax at all turns on the $1,000,000 exemption and the 5.85% notch rate up to $1,500,000, covered on the BC EHT threshold page.

How does the eTaxBC return build the tax line by line?

Returns and payments go through eTaxBC: log on, choose Employer Health Tax under Accounts, then File Return for the period. Before you start, pull the T4 Summary for every payroll account under the same business number (the first nine digits of the CRA payroll account), plus any T4A slips www2.gov.bc.ca.

Lines 200 to 770 calculate automatically. Step 1 asks whether your client amalgamated in the year, was associated with another employer on December 31, is filing a final return, or still had a BC permanent establishment on December 31. On an overpayment, you choose a refund or carry it to next year, then certify with a name and position title and save the confirmation number www2.gov.bc.ca.

Online banking bill payments use the BC Employer Health Tax payee (banks word it slightly differently) with your client's EHT account number and can take up to 3 business days to post, so pay more than 3 business days before March 31 www2.gov.bc.ca. The account number is 11 characters, starts with EHT and arrives by mail after registration www2.gov.bc.ca.

How much should each 2026 instalment be?

An employer whose tax for the previous year exceeded $2,925 pays three instalments, each the lesser of 25% of last year's tax and 25% of this year's estimate. The $2,925 figure is prescribed by s. 3 of the Employer Health Tax Regulation bclaws.gov.bc.ca. Under the 5.85% notch, $2,925 of tax is what $1,050,000 of BC payroll produces. An employer below that, and an employer in its first year with a BC permanent establishment, can pay everything with the return www2.gov.bc.ca.

Worked example. Your client's 2025 BC payroll was $1,200,000, so 2025 tax was 5.85% × $200,000 = $11,700. It expects 2026 payroll of $1,100,000, an estimate of 5.85% × $100,000 = $5,850. Each instalment is the lesser of $2,925 (25% × $11,700) and $1,462.50 (25% × $5,850), so it pays $1,462.50 on each of June 15, September 15 and December 15, 2026: $4,387.50 in all, with $1,462.50 left for March 31, 2027 if the estimate holds.

The trap is a low estimate. Say 2026 payroll actually lands at $1,150,000, tax $8,775. Interest runs when the instalments fall below 25% of both the actual current tax and the prior year tax www2.gov.bc.ca. Here 25% of the lesser of $8,775 and $11,700 is $2,193.75, so each instalment was $731.25 short and draws interest from its due date. Paying on last year's tax ($2,925 each) is the safe harbour.

What does a late return or late payment cost?

Late filing costs 5% of the balance owing on the due date, plus 1% of that balance for each complete month the return is late, capped at 12 months (s. 54). After a written demand, an employer assessed a late filing penalty in any of the three previous years pays 10% plus 2% a month, capped at 20 months (s. 55) www2.gov.bc.ca.

Worked example. Your client owes $11,700 for 2026, wasn't on instalments, and files and pays on July 20, 2027. That is 3 complete months late, so the penalty is 5% × $11,700 = $585 plus 1% × $11,700 × 3 = $351, a total of $936, plus interest on the $11,700 from March 31 bclaws.gov.bc.ca.

Interest is calculated daily and compounded monthly (s. 2 of the regulation) bclaws.gov.bc.ca. The overdue balance rate is 7.45% for October to December 2026, and refunds earn 2.45%, as of October 2026 www2.gov.bc.ca. Because the late filing penalty is a percentage of the balance unpaid on March 31, paying in full by March 31 takes it to $0 under the formula even if the return itself is late.

Which situations change the filing?

Associated employers. Each member files its own return from its own eTaxBC account. The return asks whether combined BC remuneration exceeds $1,500,000, and the Association Summary splits the $1,000,000 exemption among members. If that summary isn't completed, the filer gets no exemption www2.gov.bc.ca. The allocation agreement is signed by every member taking a share. The control tests are on the associated corporations page.

Charities and non profits. Combined BC remuneration over $1,500,000 across all qualifying locations means filing a return even when no tax is payable, and all locations go on one return with one payment www2.gov.bc.ca.

Part year and amalgamations. A successor on an amalgamation is treated as a new employer from the effective date, and the exemption and notch amounts are prorated by days www2.gov.bc.ca. An employer whose BC permanent establishment ends files 90 days later, not on March 31 www2.gov.bc.ca.

Errors and missed years. The Ministry can assess or reassess within 6 years of the original notice of assessment, with no limit where no return was filed or there was misrepresentation or fraud. Unfiled returns and corrections can go through a voluntary disclosure, and penalties or interest caused by circumstances beyond your client's control can be the subject of a waiver request www2.gov.bc.ca.