Employer Health Tax relief (EHT)

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.

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.

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.

Eligible expenses

Eligible expenses for this grant include:

• Remuneration paid to employees
• Salaries, wages, bonuses, taxable benefits, stock options, etc.

Eligible geographic areas

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.

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

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.