--000000000000811d45060e0692bc Content-Type: multipart/alternative; boundary="000000000000811d45060e0692bb" --000000000000811d45060e0692bb Content-Type: text/plain; charset="UTF-8" Content-Transfer-Encoding: quoted-printable Thank you so much, George! Regards, Sam Naffaa, CMA 905.337.1288 *Please note my email has changed:* hcao.accounting@TheKey.com TheKey.com [image: TheKey] On Tue, Jan 2, 2024 at 6:42=E2=80=AFPM Singh, George = wrote: > Hi Sam, > > Hope you enjoyed the holiday period. > > Effective January 1, 2008, the Health and Post Secondary Education Tax > Levy Act (also known as HE Levy) exemption increased from $1 million to > $1.25 million and the reduced tax range increased to between $1.25 millio= n > and $2.5 million (from between $1 million and $2 million). Employers, > including employers that are *part of an associated group*, whose total > annual remuneration falls below $1.25 million will be exempt from the HE > Levy. If the total annual remuneration falls between $1.25M. > > Employers with a total remuneration surpassing $4 million annually are > taxed at the basic rate of 2.15% on the entire amount. This means the > initial $2 million is not exempt. > > For example, the tax payable on remuneration of $5.5 million would be > ($5,500,000 X exemption prorated for part-year 2.15%) =3D $118,250. > > There are also notch rate considerations that need to be considered. > Employers with total remuneration ranging from $2 million to $4 million > annually are only taxed on the portion exceeding $2 million, at the notch > tax rate of 4.3%. > > For example, on remuneration of $2.15 million, the tax payable is > ($2,150,000 - $2,000,000 =3D $150,000) X 4.3% =3D $6,450. > > It is important to note that entities within an associated group, which > includes corporate partnerships, are treated as a unified employer. For > instance, if Corp. A disbursed $1,000,000 in remuneration, and Corp. B > disbursed $1,150,000; the combined remuneration for the associated group = is > $2.15 million, and the tax liability follows the example provided above. > > Sam, can you confirm what the annual total remuneration is so that the ta= x > rate can be determined? Regardless of the tax rate exemption, if the > annual amount is greater than the exemption threshold amongst all > associated entities, the registration and filing will need to be complete= d > and hence the requested information as requested will be required. > > > > > > Best Regards, > > *George Singh * > > Executive Director, Indirect Tax > > > > KPMG LLP > > 333 Bay Street, Suite 4600 > > Toronto, ON. M5H 2S5 > > P: (416)777-3900 > > F: (416)777-8226 > > : georgesingh@kpmg.ca > > > Please consider the environment before printing this e-mail > > > > *From:* Sam Naffaa > *Sent:* Tuesday, January 2, 2024 7:12 AM > *To:* Singh, George > *Cc:* Timothy Thomas > *Subject:* Re: EHT MB and BC [EXTERNAL] > > > > Thanks for your email and happy to discuss if needed. Maybe the excel > sheet is not updated o