Employer Health Tax - EHT
Ministry of Finance - MOF
Last Verified:
2006-05-09
Act:
Employer Health Tax Act
To Whom Does This Apply?
This document is based on information from the Ministry of Finance's " Employer Health Tax Guide for Employers " revised May 2006 and Information Bulletin 2-98 " Tax Exemption " dated September 2001 (published at http://www.trd.fin.gov.on.ca).
Summary
Employer Health Tax (EHT) is paid by employers who have annual total remuneration for the year
(exceeding the exemption amount allowed) paid to employees or former employees who:
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report for work at a permanent establishment of the employer in Ontario, or
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do not report for work at a permanent establishment of the employer but are paid from or through a
permanent establishment of the employer in Ontario.
Note :
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Eligible employers are exempt from tax on the first $400,000 of annual remuneration.
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Eligible employers who are associated are required to share the exemption among members of the
associated group.
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Employers may be required to pay EHT on remuneration paid by a third party to an employee.
For further information:
visit these Web sites:
EHT Information Bulletins and Circulars
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_6713_1.html
Remuneration
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_6699_1.html
Permanent Establishment
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_6701_1.html
Exemption Levels
For the first $400,000 of the payroll, eligible employers are exempt from paying the Employer Health Tax.
Eligible Employers for EHT Exemption
Eligible employers generally include the following:
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private sector employers;
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organizations that receive financial assistance from any level of government but are not under the control of government; and
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Crown corporations that are subject to federal income tax under Part I of the Income Tax Act (Canada).
Non-eligible Employers for EHT Exemption
The following employers are not eligible to claim the EHT exemption:
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public sector employers; including federal, provincial and municipal governments, universities, colleges, school boards and hospitals;
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Crown agencies not subject to tax under Part I of the Income Tax Act (Canada); and
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employers exempt from income tax under paragraphs 149(l)(a) to (d.6), (h.l), (o) to (o.2), (o.4) to (s.2), and (u) to (z) of the Income Tax Act (Canada), for example, municipal and provincial corporations and certain trusts.
For further information:
visit the Web site:
Information Bulletin 2-98 Tax Exemption
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_3645_1.html
Payment Schedule
Tax Rates
For specific information on current EHT rates applicable to your business, please contact the nearest Employer Health Tax Office.
For further information:
visit the Web site:
EHT - Enquiries
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_6693_1.html
How to Register for EHT
The following employers are required to register with the ministry:
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employers who are not eligible for the tax exemption;
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eligible employers whose total Ontario remuneration exceeds the exemption threshold;
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employers who are associated.
To register for EHT, an employer may:
Once registered, the employer receives an EHT account number. Employers who have a federal business
number, a Retail Sales Tax account number, or an Ontario Corporations Tax account number should provide this information when registering for EHT.
One EHT account number is usually assigned to each employer; however, an employer can have more than one for different payroll centres or payroll types. Multiple account employers are required to file separate instalments and annual returns for each account.
For further information:
visit these Web sites:
Ontario Business Connects (OBC)
http://www.cbs.gov.on.ca/obc/english/4THRMM.htm
Ministry of Finance Tax Offices
http://www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_1945_1.html
Note: Multiple account employers (i.e. employers who have more than one EHT account number set up for different payroll centres or types) can allocate the exemption to any of their multiple accounts to the extent that it does not exceed the total exemption allowed for the year.
Employers who already have an Ontario Retail Sales Tax account number (i.e. a vendor permit number) or a Canada Customs and Revenue Agency Business Number - BN should provide that number when registering for EHT.
For further information:
see the document:
Business Number - BN
Related Reading
DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.
Ontario Contact(s):
Hamilton Tax Office
Ministry of Finance - MOF
15th Floor
119 King Street West
Hamilton, Ontario
L8P 4Y7
Telephone: (905) 521-7504
Fax: (905) 521-7868
Toll-free (information): 1-800-263-9229
Kitchener Tax Office
Ministry of Finance - MOF
1st Floor
305 King Street West
Kitchener, Ontario
N2G 1B9
Telephone: (519) 576-8400
Fax: (519) 571-6100
Toll-free (information): 1-800-265-2303
London Tax Office
Ministry of Finance - MOF
Dufferin Coporate Centre
130 Dufferin Avenue
Suite 400
London, Ontario
N6A 6G8
Telephone: (519) 433-3901
Fax: (519) 661-6618
Toll-free (information): 1-800-265-1540
Mississauga Tax Office
Ministry of Finance - MOF
Suite 200
77 City Centre Drive
Mississauga, Ontario
L5B 1M5
Telephone: (905) 273-9490
Fax: (905) 949-3389
Toll-free (information): 1-800-265-9969
North Bay Tax Office
Ministry of Finance - MOF
Suite 102
447 McKeown Avenue
North Bay, Ontario
P1B 9S9
Telephone: (705) 474-4900
Fax: (705) 495-3805
Toll-free (information): 1-800-461-1564
Ottawa Tax Office
Ministry of Finance - MOF
Suite 300
1400 Blair Place
Gloucester, Ontario
K1J 9B8
Telephone: (613) 746-9200
Fax: (613) 842-3593
Toll-free (information): 1-800-461-4909
Oshawa Head Office
Ministry of Finance - MOF
33 King Street West
Oshawa, Ontario
L1H 8H5
Telephone: (905) 436-4561
Fax: (905) 436-4474
Toll-free (information): 1-800-265-9005
Sudbury Tax Office
Ministry of Finance - MOF
Suite 102
199 Larch Street
Sudbury, Ontario
P3E 5P9
Telephone: (705) 564-6118
Fax: (705) 564-4499
Thunder Bay Tax Office
Ministry of Finance - MOF
3rd Floor
130 South Syndicate Avenue
Thunder Bay, Ontario
P7E 1C7
Telephone: (807) 625-5840
Fax: (807) 625-5848
Toll-free (information): 1-800-465-6699
Toronto Tax Office
Ministry of Finance - MOF
Suite 200
5 Park Home Avenue
North York, Ontario
M2N 6W8
Telephone: (416) 222-6246
Fax: (416) 218-3738
Toll-free (information): 1-888-565-6433
Whitby - Retail Sales Tax Refunds
Ministry of Finance - MOF
2nd Floor
1600 Champlain Avenue
Whitby, Ontario
L1N 9B2
Telephone: (905) 432-3431
Fax: (905) 435-3543
Toll-free (information): 1-800-615-2757
Windsor Tax Office
Ministry of Finance - MOF
Unit 103
215 Eugenie Street West
Windsor, Ontario
N8X 2X7
Telephone: (519) 250-0066
Fax: (519) 972-2950
Toll-free (information): 1-800-465-4021
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