Managing employers Health, Education and Training taxes.

Manitoba, Newfoundland, Ontario and Quebec impose Health, Education and Training taxes on employers.

In general the EHT/HAPSET/HSF payroll tax is based on all employment income, including: salaries and wages, bonuses, commissions, vacation pay, directors' fees, payments for casual labour and advances of salaries and wages.

Most jurisdictions (except Quebec) have an annual exemption. In Ontario, eligible employers do not pay tax on the first $400,000 of annual Ontario payroll.
See Employers Provincial Health / Education / Training taxes

The tax rate varies by jurisdiction and may vary by the total remuneration.
In Ontario, the rate is fixed at 1.95% over $400,000.

To setup EHT:

1. Position on the appropriate Payroll. If your organization has one remittance number for payroll deductions and all your payroll is in one province you may position on the parent Canada Payroll folder. This will ensure that all employees from all sub-payrolls are included. Set the EHT rate and Annual Exemption.
   To do this:
   
   Click on the window tab marked "Advanced" and select Payroll Settings.
   
   
   
   For additional information, see Payroll Settings.
   
   
2. Line 8 above specifies the contribution rate at which the employer EHT/HAPSET/HSF contribution is calculated. This rate may vary depending on your gross payroll. If you do not want payroll to calculate the EHT/HAPSET/HSF contribution on each paycheck (you will do it manually) set this field to "0".
   
   
3. Line 9 above specifies the annual payroll exemption available in some jurisdictions.
   
   
4. Two accounts need to be specified on the payrun settings. An expense and an accrued account to be used for posting the EHT/HAPSET/HSF tax. The accrued accounts should be setup on a Withholdings report, see adding accounts for EHT.
   
   
   
   
5. By default none of the employees or earnings accounts are exempt.
   
   

To view EHT/HAPSET/HSF Earnings:

To view the total current EHT/HAPSET/HSF earnings, for the current year, position on the JOURNAL/PAYROLL/PAYCHECK/CANADA.

On the EHT/HSF column, change the index to date, and set the date range to the current year.