Employer Health Tax report

Employer Health Tax (EHT) is a provincial payroll tax that Canadian employers must pay based on the total remuneration that they provide to employees.

The deduction uses a percentage that is based on the total payroll amount.

All provinces with EHT, except Quebec, provide an exemption threshold. After the exemption threshold is reached, the deduction starts.

You must set up EHT exemptions and wages records on the deduction codes for each applicable legal entity, legal establishment, year, and EHT number. The threshold amounts differ by province.

New records must be created before the first payroll of each calendar year. Prior year records are also utilized as the YTD Total Wages value sent to TaxFactory Canada in the API input field <grossAnnualPayroll></grossAnnualPayroll> to determine the current year’s rate for some provinces.

Reporting uses the EHT setup that includes the deduction code, EHT exemptions and wages, and the wage accumulation that is tracked during Payroll Cycle and Payroll Off Cycle processing.