Wiki: CANADIAN PROVINCIAL HEALTH CARE

PROVINCIAL HEALTH CARE – ONTARIO (EHT)#

The Employer Health Tax (EHT) is a payroll tax on remuneration paid to employees in the Province of Ontario. The EHT is calculated for all employees who are applicable. The EHT exemption amount should also be taken into consideration when calculating the EHT amounts for all employees. EHT should not be contributed until the exemption amount has been reached.

Starting January 2019, the EHT is enhanced to check the employer EHT annual exemption prior to calculating the EHT in a payrun.

SETUP#

Set up new pay component for new PC usage 5053-EHT Taxable Earnings
This new pay component (with PC Usage 5053) will store the EHT Earnings that is used to calculate EHT once when an employee’s pay has reached the EHT annual exemption amount in the Payrun, then this pay and all pays after this employee will calculate EHT.

Lexicon X_GOVT_RATE_TYPE added 2 values:
- 012002 - Ontario EHT Ann Max Exemption
- 012003 - ONT EHT YTD Cumulative Earn

On IDGV, user needs to set up 2 entries for EHT Rate and EHT Exemption amount as follows:
- ‘Reg Type’ = ‘Cdn Health Ins Regis’
- State = ‘Ontario’
  ‘Govt Rate Type’ = ‘Cdn Health Ins Rate’, set up EHT rate
  ‘Govt Rate Type’ = ‘ONT EHT Ann Max Exemption’, set up EHT exemption, e.g. 450000

Note:

Effective Jan 01, 2019, IDGV EHT uses ‘Govt Regist Type’ = ‘Cdn Health Ins Regis’ entry
If this is not set up, the previous ‘Cdn Health Ins 1’, ‘Cdn Health Ins 2’, ‘Cdn Health Ins 3’ will be used at the beginning of the year.
UPCLOZ will accumulate each pay’s EHT Earnings with IDGV ‘Regist Type’ = ‘Cdn Health Ins Regis’ and ‘Govt Rate Type’ = ‘ONT EHT YTD Cumulative Earn’.
After UPCLOZ, user needs to enter the EHT Rate and EHT Exemption on IDGV.
At the beginning of a calendar year, UPCALC / UPCLOZ will re-start the ‘ONT EHT YTD Cumulative Earn’ by generating new effective date ‘Jan-01-YYYY’ according to Pay Issue date

Notes #

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