Employer Health Tax (EHT) Initiative

Following the introduction of the Employer Health Tax (EHT) in January 2019, a 1.95% tax is payable on remuneration paid to all UBC employees.

In order to mitigate the impact on research budgets, UBC will reimburse this additional expense through to the end of March 2020 for all existing research projects, and to the end of March 2020 for any projects where the application was submitted prior to June 30, 2019.

For more information on the Employer Health Tax: https://www2.gov.bc.ca/gov/content/taxes/employer-health-tax/employer-health-tax-overview

Q&A

Q: When will the reimbursements for the EHT be transferred?
The first transfer will be after the June 2019 ledger closes covering the period January – June 2019. On an ongoing basis, it will be transferred monthly after the GL closes.

Q: Where will the reimbursement be credited?
The reimbursement will be credited to the Research PG the EHT was charged to via account code 599000. If the PG is closed, the PI’s active R2222 PG will be credited.

Q: Will this impact salaries that are first paid through health authorities and later cost recovered from UBC?
The reimbursement is for EHT expenses borne by UBC employees and are directly charged to a UBC research PG, which are verifiable transactions through UBC’s payroll system.

Q: Whom can I contact for more information?
Please send your queries to Research Finance.