Ontario EHT

Ontario EHT Calculations 

In Ontario, certain companies will need to pay EHT or Employer Health Tax for their employees. Is your company subject to the EHT ?

To set up EHT, login to your account and follow these steps: 

Step 1. Settings 

Step 2. Pay Rules 

Step 3. Company Rules 

Fill in the following items: 

Step 4.  Click the ENABLED box 

Step 5. Enter your GL Code 

Step 6.  Enter Details EHT account number 

• Exemption amount (if different than the default) for the payroll year 

• Remittance frequency 

• YTD Earnings before enabling (if applicable - see below) 

• If you are starting with PaymentEvolution part way through a calendar year, or forgot to enable EHT, enter the Ontario YTD Earnings before enabling and we will deduct this from your full exemption 

• Example: you start in June and your exemption is $490,000 for the year and you paid Ontario employees taxable income of $390,000 before starting. Enter $490,000 in the exemption and $390,000 in YTD before enabling, and wee will start calculating EHT after your next $100,000 in taxable income. 

Step 7. Click SAVE 

When you reach the exemption amount, the program will automatically start calculating EHT.  

EHT Reporting  

Note: PaymentEvolution does NOT remit EHT on your behalf 

To create your EHT report at the end of your reporting period: 

Step 8. Reports 

Step 9. Accounting 

Step 10. Remittance Reports 

Step 11. Click CREATE EHT 

Alternatively, if you wish to see the EHT amount per pay, you can use the Payrun History Report and select the box to Show Company Portions, and it will be listed. Use the check boxes on the far-left side to select a group of pay runs to add up as needed. The totals will be shown at the bottom of the page.