Canada

Employer Health Tax, in plain English.

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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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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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Related terms.

Questions about Employer Health Tax

No. EHT is an employer-paid payroll tax assessed on total remuneration. Nothing is withheld from the employee's paycheque, which distinguishes it from CPP, EI, and income tax withholding.
Ontario, British Columbia, Manitoba, Newfoundland and Labrador, and Quebec each operate an employer payroll tax of this kind, under their own names, thresholds, and rate structures. The rules are provincial rather than federal, so they differ meaningfully between jurisdictions.
Generally no. Associated or related employers are typically required to share a single exemption across the group rather than each claiming the full amount. Groups running multiple legal entities are the most common source of reassessment on this point.
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