Creating EHT exemptions and wages records

EHT exemption and wage records are required before processing the first payroll of the year.  If you do not setup a record, then this message appears when calculating a payment: No defined Employer Health Tax Exemption and Wage for Payment Date Year For Deduction Code.
  1. As payroll administrators, select Payroll > Administration > Setup.
  2. In the Structure pane, click Deductions.
  3. Click the Deduction Codes tab.
  4. Select an EHT deduction code.
  5. Click the Employer Health Tax Exemptions and Wages tab.
  6. Click Create.
  7. Specify this information by legal entity, legal establishment, and year:
    EHT Number

    Specify the employer's health tax account number.

    If the EHT number is not specified, the system continues standard EHT processing by legal entity and legal establishment.

    When the same EHT number is used on multiple Employer Health Tax Exemptions and Wages records, EHT wages are combined across associated legal entities and legal establishments.

    Exemption Indicator
    Select the exemption indicator: Single Employer (0), Associated Employer (2), Multiple Employer (1) or Non-Eligible (3).

    This value is passed to TaxFactory Canada in the API input field <allocationExemptionIndicator></allocationExemptionIndicator>.

    Exemption Amount
    Specify the exemption amount. Once the Exemption Amount is met, the EHT deduction begins to calculate.

    As a Single Employer, an organization is eligible for the full million dollar exemption. If your organization is an associated or multiple employer, the million dollar exemption amount should be prorated.

    This value is passed to TaxFactory Canada in the API input field <allocationAmount></allocationAmount>.

    Year To Date Adjustment
    Optionally, specify an amount to adjust the YTD Total Wages.
    Year To Date Wages
    Specify an amount to close updates to the YTD Wages.
    Year To Date Total Wages
    This field contains the sum of Year To Date Adjustment and Year To Date Wages.

    This value is used by Calculate Payments when accumulating the Total YTD wages as input to BSI for the EHT tax calculation.

    The current year value is added with other open Payment Schedule Cycle and Off Cycle wages and is passed to TaxFactory Canada in the API input field <YTDRemuneration></YTDRemuneration>.

    The prior year value is passed to TaxFactory Canada in the API input field <grossAnnualPayroll></grossAnnualPayroll> and is used to determine the current year’s EHT rate.

  8. Click Save.
    Note: You can also access the EHT records through this navigation:Payroll > Deductions > Maintenance > Employer Health Tax > Exemptions and Wages.