Employer Health Tax (EHT)
EHT provides partial funding for the Ontario Health Insurance Plan. Contributions are required from those employers who meet the following criteria:
- Those who have employees and they work at your permanent establishment in Ontario
- Those who pay their employees from their Ontario permanent establishment
- Those who have Ontario remuneration over their share of the tax exemption.
Employers who qualify for EHT are exempt from employer health tax on the first $400,000 of Ontario payroll. EHT is not applicable on self-employed individuals
When to pay Employer Health Tax (EHT)
If annual company payroll is $600,000 or less, employer need to pay their taxes by next year March 15th. There may be a different due date if one's all payroll is in one month or if at any time one amalgamate, or if one close down his/her Ontario permanent establishment. If payroll is in excess of $600,000 annually then monthly payments are due.
Ontario Employer Health Tax (EHT)
Rates and ranges for 2011 have not changed for Employer health Tax (EHT)
| Annual Payroll Dollars | Tax rate 2012 | Tax rate 2013 | |
| 0.00 | 200000 | 0.980% | 0.980% |
| 200000.01 | 230000 | 1.101% | 1.101% |
| 230000.01 | 260000 | 1.223% | 1.223% |
| 260000.01 | 290000 | 1.344% | 1.344% |
| 290000.01 | 320000 | 1.465% | 1.465% |
| 320000.01 | 350000 | 1.586% | 1.586% |
| 350000.01 | 380000 | 1.708% | 1.708% |
| 380000.01 | 400000 | 1.829% | 1.829% |
| 40000.01 | Over | 1.95% | 1.95% |
Employer Health Tax (EHT) Annual Return
All eligible employers must have to send annual returns to the ministry of revenue with required payment by March 15 which is due date of annual Employer Health tax return. EHT annual returns forms are not available on the ministry website so all the employers have to send original returns. Tax rate can be found using above table
Employer Health Tax (EHT) Special Return
Employer Health Tax Special Return or final returns are for those employers who pay all of their Total Ontario Remuneration in one month of a calendar year. Special Return should be sent within 15 days following the month in which the total Ontario remuneration was paid.
Note: Employer Health Tax rates last changed January 1, 1990.