Why is there a deduction for EHT now?

Employer Health Tax (EHT) is paid by employers who have annual total Ontario remuneration that exceeds the exemption amount allowed to be paid to employees or former employees who:

• report for work at a permanent establishment of the employer in Ontario, or
• do not report for work at a permanent establishment of the employer but are paid from or through a permanent establishment of the employer in Ontario.

Important: Dayforce will start remitting EHT payments when the employer fully exceeds their exemption. Employers with annual Ontario payroll over $5 million cannot claim the exemption. Charities are subject to different rules.