Ontario Employer Health Tax (EHT): Canadian Tax Lawyer’s Guidance

Nothing new on this tax, but good information and a reminder of how the program works.

What is Ontario Employer Health Tax?

The Employer Health Tax is a payroll tax created by the Employer Health Tax Act in Ontario. It was originally conceived as a tax to assist with the funding of the Ontario Health Insurance Program and rolled-out over a number of years. For those businesses that pay remuneration to employees that report to work in Ontario or are paid through a business with a permanent establishment in Ontario, EHT must be calculated and remitted to the Ontario Ministry of Finance. While it is a payroll tax, unlike the CPP or EI, there is no employee paid portion; the employer bears 100% of the burden of this tax payment.