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Employer Health Tax relief (EHT)
Ontario payroll tax relief for eligible employers and charities
Last Update: March 4, 2026
Funding available
Varies by project
Timeline
- Open Date : May 12, 2020
Location
Ontario, Canada
Overview
The Employer Health Tax (EHT) relief provides an exemption of up to $1 million on Ontario payroll to eligible employers, helping reduce payroll tax liability. The program supports organizations by offsetting tax costs on salaries, wages, and other employee remuneration, thereby encouraging job retention and operational sustainability.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Attract or retain talent
Eligible Funding
- Varies by project
Timeline
- Open Date : May 12, 2020
Eligible candidates
Eligible Industries
- All industries
Location
- Ontario
Legal structures
- Non-profit
- Sole proprietorship
- Public or Parapublic institution
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Non-profit candidates
Sector of operation
- All industries
Target groups
- Business owners / entrepreneurs
- Nonprofits / charities
Revenue structures
- All structures
Scope
- Provincial
Next Steps
1
Determine your project
2
Validate your eligibility
Documents Needed
- Application for Employer Health Tax Registration
- Associated Employers Exemption Allocation form
- How to complete your Employer Health Tax (EHT) Return
- Authorizing or Cancelling a Representative
Eligibility
Who is eligible?
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.
Who is not eligible
- Public sector employers, including governments, universities, colleges, school boards, and hospitals.
- Crown agencies not subject to tax under Part I of the Income Tax Act (Canada).
- Employers exempt from income tax under specified paragraphs of the Income Tax Act (Canada).
- Organizations with majority government-appointed directors or officers.
Eligible expenses
Eligible expenses for this grant include:
- Remuneration paid to employees
- Salaries, wages, bonuses, taxable benefits, stock options, etc.
Eligible geographic areas
- Ontario
Processing and Agreement
- Applications and returns are reviewed through Ontario Ministry of Finance processes.
- Associated employers must file an exemption allocation form with the annual return.
- The ministry may issue an assessment, after which an objection can be filed if needed.
Additional information
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.
Documents and links
Frequently Asked Questions about the Employer Health Tax relief (EHT) Program
Here are answers to the most common questions about the Employer Health Tax relief (EHT). This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Employer Health Tax relief (EHT)?
The Employer Health Tax (EHT) relief provides an exemption of up to $1 million on Ontario payroll to eligible employers, helping reduce payroll tax liability. The program supports organizations by offsetting tax costs on salaries, wages, and other employee remuneration, thereby encouraging job retention and operational sustainability.
Who is eligible for the Employer Health Tax relief (EHT) program?
To be eligible for the Employer Health Tax relief (EHT) program, you must:
The employer must have an annual Ontario payroll of less than $5 million or be a registered charity.
The employer must not be under the control of any level of government.
Eligible employers in an associated group must share the tax exemption using the Associated Employer Exemption Allocation form.
Who can I contact for more information about the Employer Health Tax relief (EHT)?
You can contact Ontario Ministry of Finance.
Where is the Employer Health Tax relief (EHT) available?
The Employer Health Tax relief (EHT) program is available the province of Ontario.
Is the Employer Health Tax relief (EHT) a grant, loan, or tax credit?
Employer Health Tax relief (EHT) is a Tax Credits
Who are the financial supporters of the Employer Health Tax relief (EHT)?
Employer Health Tax relief (EHT) is funded by Ontario Ministry of Finance, Government of Ontario