Employer Health Tax (Ontario) 

Ministry of Finance, Government of Ontario

Applies only to: Ontario

You must pay Employer Health Tax if:

  • Your employees work at your permanent establishment in Ontario
  • Your employees work elsewhere, but are paid through your permanent establishment in Ontario
  • You have Ontario remuneration (such as salaries/wages, bonuses, vacation pay) over your share of the tax exemption

You could be exempt from Employer Health Tax on the first $400,000 of your payroll if you are a private sector employer or receive government funding but are not controlled by government.