The Employer-Paid Health Tax or Employer Payroll Tax (EHT/EPT) is a tax that employers must pay to help fund health care and/or post-secondary education at the provincial level.
EHT/EPT is calculated based on the total payroll of your employees. This includes their salaries, wages, bonuses, and other compensation you provide them. The tax rate and name can vary depending on factors like the province or territory where your business operates, and the specific deductions or exemptions available.
Figuring out how much EHT/EPT you owe can seem a bit daunting, but don’t worry. We’re here to help you understand how it works so your business can navigate it smoothly.
Need to create an exemption?
Humi has programmed in the basic exemptions by default, but if you need to create a custom EHT/EPT exemption, simply reach out to our support team.
Are you in the Northwest Territories or Nunavut?
Currently, Humi doesn't calculate EPT/EHT for the Northwest Territories or Nunavut. If you have employees who report to an office in these locations, you’ll need to calculate EHT/EPT manually.
Calculating Multi-Province EPT/EHT
It’s important to ensure that employees are assigned to their designated office in Humi so that the EHT/EPT calculates correctly. Learn how to assign an employee’s location.
If your business operates in more than one province, you may have additional taxes that need to be accounted for. Humi can help make this simple by taking care of the heavy lifting.
Let’s say you have one office located in Ontario and a second office in British Columbia. Since each of these provinces has unique taxes, Humi will take the employees assigned to each location into account when calculating your EHT/EPT.
Provincial List of EHT / EPT Income Types
We've compiled this list to help you quickly and easily understand which income types are subject to EHT/EPT in the province or territory where your team members are employed.
This table is for reference only
The information in this table should be used for reference only and is subject to change. For the most up-to-date information about EHT/EPT in each province or territory, please visit the local government’s website.
Table Legend
Y = Included in EHT/EPT Earnings
N = Not Included in EHT/EPT Earnings
| Pay Item | AB | BC | MB | NB | NL | NS | NT | NU | ON | PE | QC | SK | YK |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Pay In Lieu of Notice | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Extra Pay | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Vacation Payout - Time off | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Other Pay | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Vacation Pay | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Cell Phone Allowance | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Commission | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Double Overtime | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Severance | N | N | N | N | N | N | Y | Y | N | N | N | N | N |
| Time Worked on Holiday | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Sick Pay | N | Y | Y | N | Y | Y | Y | Y | Y | N | Y | N | N |
| Retroactive Pay (Hourly or Non) | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Bereavement Leave | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Flex Time Off | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Personal Time Off | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Unpaid Time Off (Salaried) | Y | Y | Y | Y | Y | Y | Y | Y | Y | Y | Y | Y | Y |
| Controlled Tips | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Holiday Pay | N | Y | N | N | N | N | Y | Y | Y | N | Y | N | N |
| Car Allowance | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Bonus - Work Related | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
| Bonus - Discretionary | N | Y | Y | N | Y | N | Y | Y | Y | N | Y | N | N |
We hope this article helped you figure out EHT/EPT a little easier! In addition, you can learn more about compensation using the links below.