The Ontario government has temporarily increased the EHT exemption from $490,000 to $1 million for the 2020 tax year due to the special circumstances caused by the coronavirus (COVID-19) in Ontario. The exemption will return to the previous amount of $490,000 on January 1, 2021 and will be adjusted according to inflation again in 2024 using the Ontario Consumer Price Index. The exemption is eliminated for private-sector employers with annual Ontario payrolls over $5 million. Eligible employers who are registered charities can claim the exemption even if their payroll exceeds $5 million.
If you need any help in this area or with any other Covid measure and annual reporting requirements, please let us know.
Your HS & Partners Team