Regulation - Minister

Notice of intention to bring forward an Ontario Regulation under the Employer Health Tax Act Regarding Special Rules for Registered Charities

Regulation Number(s):
Instrument Type:
Regulation - Minister
Bill or Act:
Employer Health Tax Act
Summary of Decision:
The regulation has been approved.
Further Information:
Proposal Number:
Posting Date:
July 18, 2016
Summary of Proposal:
The Ministry of Finance is inviting registered charities to review the proposed measures and provide comments. The regulation under consideration would provide additional certainty for registered charities by codifying a preferential administrative practice. The regulation would:

• Provide one exemption for each qualifying location of a registered charity;
• Clarify that registered charities are exempt from the association rules for claiming the exemption; and
• Waive the requirement for registered charities to enter into and file an Associated Employers Exemption Allocation Agreement.

The regulation would end the preferential administrative practices that allow multiple exemptions at a single qualifying location.

The regulation would require registered charities to file an annual return for each of its qualifying locations. Registered charities would also be required to combine the payrolls of all of their qualifying locations to determine the applicable Employer Health Tax rate.

Some registered charities that currently make annual remittances may be required to change to monthly instalments. However, this would not affect the amount of tax a charity would pay, and would apply only if both the combined payroll of all of its qualifying locations exceeds $600,000 and the charity has Employer Health Tax payable.

This regulation would be effective as of January 1, 2017.
Contact Address:
Ministry of Finance
33 King Street West
Oshawa ON L1H 8H5
Fax: 905 436-4471
Effective Date:
December 6, 2016