September 24, 2013
Province Increases Exemption for Employer Health Tax
Ontario is helping 60,000 small businesses save money and grow by introducing legislation to increase the exemption for the Employer Health Tax starting Jan. 1, 2014.
If passed, the Supporting Small Businesses Act would increase the exemption for private-sector employers, including small businesses, charities and not-for-profit organizations, with an annual payroll of $450,000 or less. The previous limit was $400,000. This means that more than 60,000 employers would pay less Employer Health Tax, including over 12,000 that would no longer pay the tax. Those organizations would also save the cost of filing an Employer Health Tax return. Businesses would be able to use their savings to re-invest in their company or hire more staff.
Providing tax relief is part of the government’s plan to strengthen the economy and create a business climate that attracts investment and helps create jobs.