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Employer Health Tax, in plain English.
Workzoom defines Employer Health Tax as follows. Employer Health Tax is a provincial payroll tax charged to employers on total remuneration paid in a given province, with Ontario, British Columbia, Manitoba, Newfoundland and...
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The short answer
Employer Health Tax is a provincial payroll tax charged to employers on total remuneration paid in a given province, with Ontario, British Columbia, Manitoba, Newfoundland and Labrador, and Quebec each running their own version under their own name and rules. It is employer-paid, so nothing is deducted from employee pay. Thresholds, exemptions, and rates are set provincially. Workzoom calculates it from the same payroll run that produced the remuneration.
How Employer Health Tax works.
EHT is assessed on the employer, not withheld from the employee, which puts it in a different category from CPP or EI. Each province sets its own exemption threshold and rate band, and most operate on a sliding scale where the rate rises with total payroll. Associated or related employers generally have to share a single exemption rather than each claiming it, which catches groups that run several legal entities. Because the tax follows the province where the employee reports to work, multi-province employers calculate it separately per jurisdiction.
Where Employer Health Tax goes wrong.
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Where Employer Health Tax sits between HR and payroll.
Employer Health Tax does not stand alone. The concepts most often paired with it on a Canada run are CPP, EI, CRA, Statutory deduction. Each is defined elsewhere in this glossary so you can trace the full chain without leaving the site.
How Employer Health Tax runs on Workzoom.
Employer Health Tax is part of the Workzoom Payroll Suite. Workzoom runs HR, workforce, and talent on a single employee record across ten countries: Canada, the United States, the Bahamas, Jamaica, Trinidad and Tobago, Barbados, Antigua and Barbuda, Anguilla, the Cayman Islands, and the United Kingdom. Full gross-to-net payroll runs live in Canada, the United States, and the Bahamas. Pricing starts at $4 per employee per suite per month.
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