When is eht payable

EHT instalment amounts are based on the actual payroll for the month. The instalment tax rate is based on the previous year's payroll. Most employers who pay monthly instalments must use a tax rate of 1. If you are not eligible for the tax exemption and you choose to remit monthly payments, you can find your tax rate from the table above. After the end of each calendar year, you should total your total Ontario remuneration and use this amount to determine your tax rate.

You will use this tax rate to calculate your monthly instalment amounts in the upcoming year. The rate may be confirmed on your Notice of Assessment received for the previous year.

A multiple account employer must base the tax rate on the total of the previous year's remuneration for the legal entity. For EHT purposes, a legal entity may be a corporation, a trust, a sole proprietorship, a partnership, an association, a joint venture or an individual. A new employer must estimate the legal entity's annual remuneration for the first and second years to determine the instalment tax rates for the first two years.

Notes You are only required to file instalments if you have Taxable Ontario Remuneration and exceed the instalment threshold zero instalments are not required. For accurate processing of your instalments, please ensure that you report Taxable Ontario Remuneration on Line 1 - not your Total Ontario Remuneration. Line 1 should not include any remuneration that is being offset by available exemption. Line 2 - Tax Due is the dollar value of your instalment liability. Do not enter your tax rate on this line.

Associated employers who are required to file monthly instalments should follow Example 2, but Column A would be the cumulative Ontario Remuneration for the entire associated group. The annual return ensures that an employer's combined payments i. The annual return and any tax owing are due on or before March 15 of the following year.

For example, the annual return for is due on or before March 15, Where the 15 th falls on a weekend, annual returns and payments will be accepted as being made on time if received on the next business day. You may submit a return and payment at certain ServiceOntario centres. To find ServiceOntario centres that assist Ministry of Finance clients, visit ontario. The third party authorization form entitled Authorizing or Cancelling a Representative must be provided to the ministry if you wish to designate a third-party representative.

A separate annual return must be filed for every account. To calculate the tax owing for each account, use the rate based on the entire legal entity's payroll. After your annual return is processed, a Notice of Assessment is sent to tell you if any amount is owing or refundable. Employers who close their Ontario permanent establishment, who have amalgamated, or who no longer have employees in Ontario must advise the Ministry of Finance. A final return must be filed within 40 days of the business closure date for the part of the calendar year that total Ontario remuneration was paid.

Exemption claims will be pro-rated on the final return and any resulting liability may be subject to late filing penalties and interest if the required return is not filed by the due date.

For an employer which is part of an associated group and is filing a final return, it cannot claim any exemption at the time of filing, as the allocation schedule cannot be completed at this point.

However, the employer may file an amended return if any exemption is allocated to it by the associated group at the end of the year. Exemption claims determined to be in excess of allocated amounts may result in penalty and interest assessments. Final payment of any tax owing must be sent with the final return. A change in the ownership of shares is not considered a change in legal entity, and does not trigger any change in the EHT account. No final return is necessary.

Trustees in bankruptcy and other insolvency administrators must notify the ministry of their appointment within ten days of the appointment date. Employers who pay the full amount of total Ontario remuneration in one month must file a special return 15 days following the month in which it is paid.

Eligible employers are required to file a special return with full payment of any tax owing if their total Ontario remuneration in that one month exceeds their available exemption. It saves time and money, reduces paper and is available 24 hours a day, seven days a week. Employers can access their EHT accounts online to make payments.

Monthly payments may be made free of charge, by the due date, at some financial institutions in Ontario. You should confirm with your financial institution whether it will accept monthly payments. Employers will need the Instalment Statement bottom portion of their monthly Account Summary to make the payment. Employers should retain the top portion, date stamped by their financial institution, as proof of payment.

Note Annual, final and special returns are not accepted at financial institutions. Monthly instalments may be made electronically, using a financial institution's online payment service. Customers of a financial institution may access this service 24 hours a day, seven days a week. To learn more about using financial institutions to pay taxes online, visit ontario. The employer should contact the financial institution for assistance when accessing or navigating these electronic services.

Financial institutions may charge a fee for this service. The payment and Instalment Statement bottom portion of the monthly Account Summary may be delivered to certain ServiceOntario centres by the due date. When the return is processed, employers will receive a Notice of Assessment.

This notice confirms the taxation period account balance as of the assessment date. Any unpaid tax, interest, or penalties must be paid within 30 days of the date of the assessment. Interest is calculated on a daily basis from the due date of the return. An employer who does not file an instalment statement or the return by the due date may be charged a penalty.

An instalment statement is considered delivered on the date it is received by the ministry, or on the date it is received by a financial institution in Ontario. Annual, final and special returns are not accepted at financial institutions. Interest is charged on any outstanding balance on the employer's account at the rate set by the ministry.

For more information, refer to penalties and fines. What can you do if you did not file EHT annual returns for prior years but should have? You may qualify for the ministry's voluntary disclosure program. Under the program's conditions, employers will not be penalized for late filing. After the return is assessed, any overpayment may be refunded to employers or if requested transferred to the current or next year.

However, the overpayment will be applied to any balance of tax owing by the employer under any other act administered by the Ministry of Finance before an overpayment is refunded.

Note: Your financial institution may have standard charges that apply to EFT payments. Ensure your financial institution does not deduct charges from the payment amount due, as this will result in an underpayment.

Be aware that payments made using bill payments services can take up to 3 business days to process. To avoid late payment penalties and interest, make your payment more than 3 business days before the due date.

To pay your taxes using a bill payment service you need to add a payee for employer health tax to your bank account. To add a new payee to your bank account you need to know our payee name and your account number. You should be able to find us listed with your bank under one of the following payee names:. Note: Some banks and financial institutions will use a variation of the payee names above.

If you can't find us, call your bank for assistance. To complete a wire transfer, payments must be made in Canadian dollars and your bank will need the following information:. Note: Your financial institution may have standard charges that apply to wire transfer payments.

Comments will be sent to 'servicebc gov. Enter your email address if you would like a reply:. The information on this form is collected under the authority of Sections 26 c and 27 1 c of the Freedom of Information and Protection of Privacy Act to help us assess and respond to your enquiry. You can also allow a third party to pay your employer health tax on your behalf. The employer health tax return is due on March 31 of the following calendar year.

Employers that cease to have a permanent establishment in B. Employers that declare bankruptcy in the calendar year must file their employer health tax return within 90 days of becoming bankrupt.

Employers that amalgamate in the calendar year must contact us at or ITBTaxQuestions gov. Except for the calendar year, instalments are due during the calendar year on:. The remaining tax payable is due with the employer health tax return by March 31 of the following calendar year. If you're not required to make instalments, you must pay the entire balance of tax owing on or before the employer health tax return due date of March 31 of the following calendar year. Use the employer health tax calculator to help you estimate the tax.

Any remaining balance for the current year is payable when you file the tax return for the current year due by March 31 of the following year. You may still be charged interest from the instalment due date if you underpay your tax instalment payments for the current year. Once we have reviewed your return, a Notice of Assessment will be sent to you.

If there are any adjustments to the tax payable, we will provide an explanation of the adjustments with the Notice of Assessment.

We may assess or reassess your return within 6 years of the filing of your return. Enrol for access to eTaxBC to manage your account, file returns or make payments online. Already have an account? Log on to eTaxBC.

File now. For help, visit the eTaxBC help guide.