Ontario employer health tax (EHT)
Ontario employers subject to EHT must file an annual return each calendar year. The annual return for 2021 is due on or before March 15, 2022. The purpose of the annual return is to reconcile the annual tax due with the instalments paid. For monthly remitters, the instalments paid are calculated on the previous month's payroll and are remitted on the 15th of the following month. Employers with annual “Total Ontario Gross Remuneration” greater than $1,200,000 are to remit EHT monthly.
An Annual EHT return must be filed by:
- All employers who received their EHT Annual Return from the Ministry of Finance
- Eligible employers whose “Total Ontario Gross Remuneration” is greater than their available exemption for 2021
- Eligible employers with annual “Total Ontario Gross Remuneration” that does not exceed their available exemption amount if the employer:
- was a member of an associated group on December 31, 2021; or
- made EHT installment payments in 2021
- New eligible employers whose annual “Total Ontario Gross Remuneration” is greater than their allowable prorated exemption amount
If Ceridian is remitting on your behalf, the balancing of payments and the filing of the annual return is still your responsibility. Refer to the General Client Information section of your Year-End Balancing Reports for information to assist you in completing the Annual Ontario EHT Return.
Debit or credit balance
If your completed EHT return reflects a balance owing, you must submit a payment to the Ministry of Finance with your Annual EHT return.
If your completed EHT return reflects a credit balance, and the credit is deemed to be valid by the Ministry of Finance, you will receive a refund directly from the Ministry of Finance.
If you have selected “Credit to Next Year” on your EHT return, the credit will remain on your account, indefinitely, until you contact the Ministry to request a refund.
Ontario EHT annual exemption
In response to COVID-19, in 2020 the annual exemption was increased from $490,000 to $1 million. The $1 million exemption was maintained into 2021 and is set to continue in place until 2028. There is no exemption for eligible employers and groups of associated employers with annual Ontario payroll over $5 million (unless the employer is a registered charity).
Note: If your business opened part way through this year, your exemption amount is prorated. For more information go to: http://www.fin.gov.on.ca/en/guides/eht/
EHT annual year-end return - annual remitters
Employers whose “Total Ontario Gross Remuneration” for the year is less than $1,200,000 are not required to pay in monthly installments. They can ask to be set up to remit tax only once a year.
EHT annual year-end return - monthly remitters
For employers making monthly installments, the amount owing for a year is based on the payroll from January 1 to December 31.
Action Required: If your payroll includes employees in the province of Ontario, SUBMIT your Annual EHT Return by March 15, 2022(deadline).