Important Reminder for Ontario Businesses Regarding EHT

Posted on December 15th, 2025 in Domestic Tax

The Ontario Employer Health Tax (EHT) annual return must be filed by March 15, 2026, for the 2025 tax year. It is important for Canadian businesses to ensure all required instalments and filings are completed on time as penalties may apply. Failing to comply can quickly become expensive as interest charges compound daily, and penalties escalate with repeated offences.

With the relief period now over (April-October 2025), businesses that delay payments after October 1, 2025, risk retroactive penalties. Staying compliant is not just about avoiding fines but decreasing the likelihood of an audit.

Who Does This Apply To?

Employers must register for EHT if their payroll exceeds the exemption threshold (e.g., Ontario’s exemption is $1,000,000 until 2029 for eligible employers).

Tips:

Set reminders for March 15 and/or instalment due dates (if you are a larger corporation).
Ensure you know whether you exceed the exemption threshold.
Use Ontario’s electronic (online) filing system to avoid mail delays.
Maintain payroll documentation in case of audit.

Need Assistance?

If you’re unsure whether your business needs to file an EHT return or need support with preparing and submitting your filing, please contact one of our tax advisors or the Ontario Ministry of Finance for guidance. Taking action early can help you avoid costly penalties and ensure full compliance.