Government of Ontario, Ministry of Finance – Employer Health Tax (EHT) Exemption
Description:
The employer health tax program exempts employers from paying Employer Health Tax on the first $450,000 of annual payments.
Employer Health Tax (EHT) is a payroll tax on remuneration paid to employees and former employees. 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.
Comments on Funding:
The Ontario government has increased the EHT exemption for 2020 from $490,000 to $1 million due to the special circumstances caused by the coronavirus (COVID‑19) in Ontario.
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.
Eligibility:
Applicants must:
- report for work at a permanent establishment of the employer in Ontario;
- do not report for work at any permanent establishment of the employer, but are paid from the employer’s permanent establishment in Ontario.
Applications Steps:
Other Things to Note:
Due dates:
- Annual returns are due March 15th of the following calendar year.
- Special returns are due on the 15th of the month after the payroll was paid.
- Final returns are due 40 days after your business closes or the amalgamation date.
When It Ends:
Ongoing
Deadline:
March 15th