The increased EHT Exemption is likely to be warmly received by many employers. Beginning January 1, 2014, the Budget proposes that the EHT Exemption be eliminated entirely for private sector employers, including associated groups, with annual Ontario payrolls of over $5 million per year. (Registered charities will continue to be permitted to claim the EHT Exemption under the Budget proposals, irrespective of the size of a particular charity's payroll.)
The Government estimates that, while small businesses will save up to $975 per year, and approximately 12,000 small employers will no longer have any EHT liability, however more than 5,000 large employers and associated groups of employers will be required to remit up to $7,800 per year in additional EHT as a consequence of the proposed EHT amendments. These changes reflect a desire of the Government to shift the EHT burden to larger entities.
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