Benefits like employer-paid registered retirement savings plan contributions are among payroll components to be subject to British Columbia’s new employer health tax.

The B.C. government will begin levying the new health tax in January 2019 as it moves to eliminate the province’s medical services plan premiums. In a news release, the government said the transition to the new tax would result in savings of more than $50 million annually due to the costs of administering the current medical services premiums.

Read: B.C. to introduce employer health tax, remove health premiums

In a notice issued this month, the province noted that as a payroll tax, the new employer health levy will cover employment income and taxable benefits under the Income Tax Act, including: