Here is a summary of the Ontario government tax relief developed to support business during this challenging time.

Employer Health Tax
On March 25, 2020, the Ontario government announced it is increasing the Employer Health Tax (EHT) exemption for 2020 from $490,000 to $1 million.  If payroll is lower than $1 million, the employer does not need to notify the Ministry of Finance.

Deferral Payments – Ontario Administered Tax
For employers with payrolls larger than $1 million, Ontario announced on March 25, 2020 a deferral until August 31, 2020 to make such payment without interest or penalty.  This deferral applies to any provincially administered tax.

The following provincial taxes are included in the relief period:

  • Employer Health Tax
  • Tobacco Tax
  • Fuel Tax
  • Gas Tax
  • Beer, Wine & Spirits Tax
  • Mining Tax
  • Insurance Premium Tax
  • International Fuel Tax Agreement
  • Retail Sales Tax on Insurance Contracts and Benefit Plans
  • Race Tracks Tax

Relief is automatic.  If a business is unable to file their return or remittance during the relief period, they do not need to contact or notify the Ministry of Finance.  Penalties and interest will be waived automatically for all late returns or remittances by Ontario businesses during the relief period.

Source: Blane McMurty