--000000000000d9510e060e93ed0c Content-Type: multipart/alternative; boundary="000000000000d9510d060e93ed0b" --000000000000d9510d060e93ed0b Content-Type: text/plain; charset="UTF-8" Content-Transfer-Encoding: quoted-printable Thank you for the explanation. Regards, Sam Naffaa, CMA 905.337.1288 *Please note my email has changed:* hcao.accounting@TheKey.com TheKey.com [image: TheKey] On Tue, Jan 9, 2024 at 6:33=E2=80=AFPM Singh, George = wrote: > Hi Sam, > > Hope you are doing well. > > The HE Levy (a form of EHT tax) is a payroll tax on all remuneration paid > to an employee, including bonuses, salaries, wages paid to hourly > employees, stock options, etc. The HE Levy is paid by employers with a > permanent establishment in Manitoba. The amount an employer owes depends = on > the total amount of remuneration paid to employees who reside in the > province by the employer. > > Associated groups, which *include associated corporations* and specific > corporate partnerships, must divide the $2 million exemption among > themselves, considering the *total combined annual payroll*. > > Employers whose total compensation in a year amounts to $2 million or les= s > are granted an exemption. > > Tax rates based on total yearly payroll: > > - *$2 Million or less: *Exempt > - *$2 to $4 million:* 4.3% on the amount over $2 million (notch > provision). > - *Over $4 million*: 2.15% of the total payroll (the $2 Million is not > a deduction). > > Employers without a continuous presence in Manitoba throughout the entire > year must calculate the exemption or notch provision (as applicable) on a > prorated basis for that year. > > If the payroll is $1.7M and there are no associated companies, the > business would fall below the annual exemption limit. > > > > Hope this clarifies your question. > > > > > > Best Regards, > > *George Singh * > > Executive Director, Indirect Tax > > > > KPMG LLP > > 333 Bay Street, Suite 4600 > > Toronto, ON. M5H 2S5 > > P: (416)777-3900 > > F: (416)777-8226 > > : georgesingh@kpmg.ca > > > Please consider the environment before printing this e-mail > > > > *From:* Sam Naffaa > *Sent:* Tuesday, January 9, 2024 8:06 AM > *To:* Singh, George > *Cc:* Timothy Thomas > *Subject:* Re: EHT MB and BC [EXTERNAL] > > > > Hi George, sorry for bothering you again. > > I am confused about the exempt limit( 1.25 m or 2 M) . Is the 2 M exempt > limit only applicable for the total remuneration between 2 M and 4 M? Wha= t > if the total remuneration is 1.7 M? Do we consider only the amount above > 1.25 M at 4.3$ or it is exempt? > > Regards, > > Sam Naffaa, CMA > > 905.337.1288 > > *Please note my email has changed:* > > hcao.accounting@TheKey.com > > *TheKey.com > * > > [image: TheKey] > > > > > > > > > > > > > > > > > On Wed, Jan 3, 2024 at 12:40=E2=80=AFPM Sam Naffaa > wrote: > > Thank you so much, George! > > Regards, > > Sam Naffaa, CMA > > 905.337.1288 > > *Please note my email has changed:* > > hcao.accounting@TheKey.com > > *TheKey.com > * > > [i