EMPLOYER HEALTH TAX and COVID-19 UPDATES


WHAT IS THE EMPLOYER HEALTH TAX (“EHT)


Employer Health Tax (EHT) is a payroll tax on remuneration paid to employees and former employees in Ontario.


WHO IS THE EMPLOYER?


An employer is someone who pays an employee for work or services. An employer can be an individual, a corporation, a government, a university, a school board, a hospital, a non-profit organization, a charity, a trust, a partnership, a joint venture or an unincorporated association.


DO I NEED TO REGISTER FOR EHT?


You need to register with the province if you are an employer and you are:

  • not eligible for the tax exemption

  • eligible for the tax exemption and your Ontario payroll exceeds your allowable exemption amount, or

  • an associated employer.


HOW DO I REGISTER FOR EMPLOYER HEALTH TAX?


You can register for EHT by:


  • calling the Ministry of Finance at 1 866 668‑8297 OR

  • making an appointment to meet with a representative at a Ministry of Finance


When you register, you need to provide the following information:

  • legal name

  • trade name

  • business address

  • mailing address

  • telephone and fax numbers

  • Ontario corporation number

  • type of business for North American Industry Classification System (NAICS)

  • director(s) name and telephone number

  • name of contact person or authorized representative

  • payroll start date

  • estimated annual payroll

  • payroll frequency

  • federal business number

  • employer type (for example: associated, multiple account, public sector).




DO I HAVE TO PAY EHT?


You have to pay Employer Health Tax if you are an employer and you:

  • have employees who physically report for work at your permanent establishment in Ontario, or

  • have employees who are attached to your permanent establishment in Ontario, or

  • have employees who do not report to work at any of your permanent establishments but are paid from or through your Ontario permanent establishment, and

  • have Ontario payroll in excess of your allowable exemption amount.


WHAT IS THE EHT RATES?


The EHT rates vary from 0.98% on Ontario payroll less than $200,000, up to 1.95% for payroll in excess of $400,000.




ANY EHT UPDATES FOR COVID-19?


The Ontario government has extended the interest and penalty relief period by one month to October 1, 2020


On March 25, 2020, the Ontario government announced relief measures to help support Ontario businesses when they need it most. These include increasing the Employer Health Tax exemption for 2020 from $490,000 to $1 million and a five‑month relief period for Ontario businesses who are unable to file or remit their provincial taxes on time due to the special circumstances caused by the COVID‑19 in Ontario. The exemption will return to the previous amount of $490,000 on January 1, 2021.


Employers normally cannot claim the exemption if their Ontario payroll for the year (including the payroll of any associated employers) is over $5 million. However, eligible employers who are registered charities can claim the exemption even if their payroll exceeds $5 million.


Contact us:


If you have any questions or inquiries regarding Employer Health Tax (“EHT”), you can contact us at 647-861-2099 or send email to info@globalabcservices.com






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