Ontario EHT Calculations
In Ontario certain companies will need to pay EHT or Employer Health Tax for their employees. To see if your organization is subject to the EHT, please see HERE
PaymentEvolution can automatically perform EHT calculations for you
To set up EHT, follow these steps:
- Go to COMPANY SETTINGS>PAY RULES>COMPANY RULES
- Fill in the following items
- Click the ENABLED box
- Enter your GL code
- Enter your EHT account number
- Enter your exemption amount (if different than the default) for the payroll year
- Enter your remittance frequency
- Enter 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 Earnings before enabling, and we will start calculating EHT after your next $100,000 in taxable income.
- Click SAVE
When you reach the exemption amount the program will automatically start calculating EHT.
**NOTE PaymentEvolution does NOT remit EHT on your behalf
To create your EHT report (at the end of your reporting period) Please go to ACTIONS>EHT REMITTANCE REPORT. The report will then be generated for you.
It can also be found by going to Report>Accounting>Remittance Reports (after you have created it)
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 there. Use the check boxes on the far left to select a group of pay runs to add up as needed. The totals will be at the bottom of the page.