Employer Health Tax – Overview Effective January 1, 2019, the Employer Health Tax (EHT) became effective. Under the EHT, employers will pay a tax on their total payroll, subject to meeting certain thresholds. On January 1, 2018, the B.C. government reduced the Medical Service Plan (MSP) premiums that individuals were required to pay in by 50%, with the intent of fully eliminating MSP by January 1, 2020. As a result, the EHT was implemented to offset this loss in premiums.