Employer Health Tax relief (EHT)
grant_single|update January 24, 2025
ON, Canada
Health tax exemption for Ontario employers
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDate May 12, 2020
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Government of Ontario
- Ontario Ministry of Finance
grant_single|status
grant_card_status|open
grant_single_labels|preview
Access an exemption from paying the Ontario Employer Health Tax on the first $1 million of your annual remuneration (payroll).
grant_single_labels|terms_and_conditions
The Employer Health Tax relief does not specify distinct financing modalities within the provided information. Instead, it focuses on tax exemption and obligations for employers regarding their payrolls.
grant_single_labels|projects
grant_single|admissibleProjectsExample
$ 160,000
Creating an environmental conservation education program
$ 500,000
Developing an advanced fintech solution to streamline loan processing for credit unions
$ 200,000
Setting up a community recycling program for a local non-profit organization
$ 150,000
Improving accessibility at a community theatre
$ 250,000
Expanding a farm-to-table delivery service to support local agriculture
$ 120,000
Launching a digital literacy campaign to help senior citizens
grant_single_labels|admissibility
Eligibility for the Employer Health Tax (EHT) exemption is determined by specific requirements related to the employer's status and payroll levels.
- The employer must be an eligible employer as defined under the EHT Act.
- The employer must pay income taxes.
- The Ontario payroll for the year, including that of any associated employers, must be less than $5 million, or the employer must be a registered charity.
- The employer must not be under the control of any level of government, such as having municipal representatives on their board.
grant_eligibility_criteria|who_can_apply
Eligible employers, as defined under the EHT Act, can apply for the Employer Health Tax (EHT) exemption if they meet the following conditions: they pay income taxes, their Ontario payroll is less than $5 million, or they are a registered charity, and they are not controlled by any level of government.
grant_eligibility_criteria|eligible_expenses
Eligible expenses for this grant include:
- Remuneration paid to employees
- Salaries, wages, bonuses, taxable benefits, stock options, etc.
grant_eligibility_criteria|zone
This grant is explicitly applicable to employers operating in Ontario. The scope restricts eligibility based on the employer's establishment location within Ontario.
- Employers with a permanent establishment in Ontario.
- Companies paying employees from an Ontario-based establishment.
- Registered charities operating in Ontario.
grant_single_labels|criteria
There are evaluation and selection criteria for this grant. The criteria include:
- Employers are required to pay EHT on remuneration paid to employees who meet certain conditions
- Eligible employers must register for an EHT account with the Ontario Ministry of Finance
- An exemption amount is available for eligible employers based on their Ontario payroll
- Associated employers must share the tax exemption for the year and meet specific requirements
- Specific tax rates apply based on the level of Ontario payroll
grant_single_labels|apply
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grant_single_labels|otherInfo
In addition to the eligibility criteria and processes, here are some further details on managing Employer Health Tax (EHT) duties in Ontario:
- Employers are expected to maintain an accurate record and keep books in line with the EHT Act and Regulations.
- The interest rates on any outstanding balance for EHT obligations may change quarterly, which employers must stay updated on.
- Employers needing assistance with specific scenarios can request written interpretations from the Ministry.
- The Ministry of Finance offers interest and penalty relief during specified periods, such as the COVID-19 relief window.
- It is essential for employers to accurately complete all information required on EHT-related forms to avoid penalties.
- Employers who disagree with EHT assessments can file a Notice of Objection or Appeal within designated timeframes.
- Out-of-province employers establishing themselves in Ontario for less than 24 months should contact the Ministry to understand their obligations.
- Benefits of compliance include avoiding fines, penalties, and potentially harsh legal repercussions for incorrect filings or misstatements.
Apply to this program
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