Employer Health Tax (EHT) is a payroll tax on remuneration paid to employees and former employees. The EHT exemption increased to $450,000 from $400,000 of Ontario payroll.
You have to pay Employer Health Tax if you are an employer and you:
- Have employees who physically report for work at your permanent establishment in Ontario, or
- Have employees who are attached to your permanent establishment in Ontario, or
- Have employees who do not report to work at any of your permanent establishments but are paid from or through your Ontario permanent establishment, and
- Have Ontario payroll in excess of your allowable exemption amount