Employers who have employees subject to EHT in Ontario must file an annual return (due March 15 in 2022) to reconcile the amount of tax due and the instalments paid during the year. Monthly remitters calculate the amount of instalments based on the payroll of the previous month and remit the tax on March 15 of the following month. Employers who pay more than $1,200,000 in annual “Total Ontario Gross Remuneration” are required to remit EHT on a monthly basis.
The earnings report for EHT will be released pre-market, with a live conference call immediately following. The conference call will begin at 10:00 a.m. ET and will be held by the company’s management. If you have questions about the tax or your account, you can speak with a Ministry of Finance representative. They will be able to answer any questions you may have and help you understand your EHT assessment.
For small businesses, it can be difficult to determine the exact amount of tax they owe. The simplest way to find the tax you owe is to multiply your Ontario payroll by the tax rate. This rate is based on the amount of payroll paid in Ontario before deductions. For employers with annual payrolls of more than $5 million, there is no tax exemption available. For instance, an employer with a payroll of $175,000 in Ontario would pay 0.98%, or $1,715 in EHT. A return for EHT is sent to employers once a year to report their earnings and determine how much they owe.