Which type of employer would be eligible for the Ontario Employer Health Tax exemption?

• A. Public corporations
• B. Private individuals
• C. Non-profit hospitals
• D. Registered charities

Answer: (D)

The key idea is that Ontario Employer Health Tax exemptions are tied to organizations that have recognized charitable status. Registered charities, as defined under the Income Tax Act, are fully exempt from EHT on their Ontario payroll. This is why they qualify for the exemption—their charitable status places them outside the tax on employer health payrolls.

Public corporations aren’t exempt under this rule and would generally owe EHT. Private individuals aren’t treated as employers for this purpose in a way that grants an exemption. Non-profit hospitals would be exempt only if they themselves are registered charities; otherwise they wouldn’t automatically qualify for the EHT exemption.