Employer Health Tax (EHT)
The Government of Ontario requires most employers to pay Employer Health Tax (“EHT”) on remuneration paid to employees and certain former employees (including officers and directors). Any employer with an annual gross Ontario payroll in excess of $400,000 and with a permanent establishment in Ontario must pay EHT, unless an exemption applies.
EHT partially funds Ontario’s health care system. Over the years, many disputes/issues have arisen. For example, disputes often arise with respect to:
- Calculation of total Ontario remuneration and exemption threshold (what is included and what is excluded)
- Payments to officers and directors;
- The status of persons (independent contractors vs. employees)
- Employees located outside Ontario but paid from an Ontario location;
- Timing of returns and payments;
- Refunds of over payments by employers;
- Related parties;
- Avoidance transactions; and
- Late filing of returns.
How can we help you?
- Do you need to register or EHT purposes?
- Are you a non-resident setting up operations in Ontario and need advice concerning compliance?
- Do you need a ruling in order to comply with the law?
- Are you being audited and need assistance organizing records for the audit?
- Has an auditor raised an issue?
- Has as auditor asked you to sign a waiver?
- Has the Minister issued a demand for information?
- Has the Minister issued an assessment?
- Would you like to file a Notice of Objection and need assistance framing the arguments?
- Would you like to file a Notice of Appeal with the Superior Court of Justice in Ontario?
- Is the Ministry of Finance taking enforcement action?
- Has the Minister charged the corporation (or officers, directors or agents) with an offence?
Additional Information about LexSage
LexSage has extensive experience in providing sage and proactive EHT advice and reactive assistance in responding to Ministry of Finance claims against employers. Based on almost 20 years of experience at Canada’s top law firms, Cyndee Todgham Cherniak has helped numerous clients involved in large and small corporate transactions, new businesses in Ontario, existing businesses with officers in Ontario and across Canada, and small businesses who wish to control costs while paying the right amount of EHT tax.
LexSage has experience dealing with the Ontario Ministry of Finance in the course of transactions, preparing requests for rulings, preparing notices of objection and preparing notices of appeal. Cyndee has assisted clients obtain clearance certificates and has negotiated payment plans. If you need someone in your corner, we would be pleased to help.
Cyndee is the Chair of the Canadian Bar Association, National Sales Tax, Customs and Trade Section. She has been recognized as an up and coming commodity tax lawyer in Canada’s L’Expert directory.
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