Employer Health Tax
MILLAR KREKLEWETZ LLP is a boutique Canadian law firm with lawyers who have significant expertise in the Employer Health Tax Issues.
The following is a short introduction to our Employer Health Tax (ETH) services.
Employer Health Tax
Employers are required to pay EHT to Ontario to fund the Ontario health insurance plan. EHT is calculated on the "total Ontario remuneration" paid to employees who either report to work at a permanent establishment of the employer in Ontario or, do not report for work at a permanent establishment of the employer but are paid from or through a permanent establishment of the employer in Ontario . Accordingly, ETH is only payable in respect of employees in respect of a permanent establishment in Ontario (and not independent contractors). An employer who fails to deliver its returns on time and as required may be subject to penalties under the EHTA and/or in certain instances, prosecution.
Millar Kreklewetz LLP has extensive experience in providing advice and assistance to a full range of ETH matters including not only challenges to employee vs. independent contractor status, but also Ontario permanent establishment issues, advising clients as to whether they are required to be registered for EHT purposes as well as whether they are entitled to the benefit of certain exemptions for eligible employers. Millar Kreklewetz LLP also provides a full range of planning in the ETH area including assistance in drafting agreements with a view to ensuring that the proper legal characterization of the relationship is documented and in
Millar Kreklewetz LLP has expertise in assisting Clients undergoing EHT audits. Millar Kreklewetz LLP also has extensive experience in obtaining Interpretation Rulings from the Ministry of Finance regarding the relationship between the parties and in making representations to the Ministry of Finance and in filing Notices of Objections to assessments or disallowances under the EHTA. Where necessary, Millar Kreklewetz also has experience in representing taxpayers in respect of EHT appeals before the Ontario Superior Court of Justice, Ontario Court of Appeal and the Supreme Court of Canada.