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Employer Health Tax (EHT)

Relief Measure for Businesses: Employer Health Tax (EHT)


SB Partners Admin on April 7, 2020 in COVID19

What does the Employer Health Tax (EHT) relief measure mean for my business?

On March 25, 2020, the Ontario government announced relief measures to help support Ontario businesses when they need it most.

Note: This measure only applies to businesses that pay wages greater than $490,000 annually.

What’s Included?

  • Increasing the Employer Health Tax exemption for 2020 from $490,000 to $1 million. The EHT exemption will return to $490,000 on January 1, 2021
  • Changes to Instalments: You will begin making your instalment payments after your payroll has exceeded the new $1 million exemption level.

A five‑month relief period for Ontario businesses who are unable to file or remit their provincial taxes on time due to the special circumstances caused by the coronavirus (COVID‑19) in Ontario

What is not included?

  • The relief period does not include business accounts with outstanding taxes, interest or penalties owing to the government from previous filing periods. or;
  • Existing debts from before the relief period will continue to accrue interest.

Filing Your Late Return or Remittance

Ontario businesses are required to file any late returns or remittances by the end of the relief period starting September 1, 2020.