Re: MB EHT

Hi Sam,

Total 2023 remuneration in Winnipeg:

Gross Pay(Taxable) : $1692234.34

Net Pay: $1341973.19

[image: image.png]

Thanks,
Irin



On Wed, Jan 3, 2024 at 3:36 AM Sam Naffaa <hcao.accounting@thekey.com>
wrote:

> *Hi Irin, Please see from information below about the EHT in MB. We need
> to know the total 2023 remuneration in MB. Please send it to me. *
>
> 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 million
> 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%) = $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 = $150,000) X 4.3% = $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.
> Regards,
> Sam Naffaa, CMA
> 905.337.1288
> *Please note my email has changed:*
> hcao.accounting@TheKey.com <Madhu.Vijayan@TheKey.com>
>
> TheKey.com <https://www.thekey.com/>
> [image: TheKey] <https://www.thekey.com/>
>
>
>
>
>
>
>
> On Tue, Jan 2, 2024 at 7:14 PM Irin Eva <irin.eva@thekey.com> wrote:
>
>> Hi Sam,
>>
>> I am not sure either. They actually emailed me. I will call them to
>> confirm.
>>
>> Thanks,
>> Irin
>>
>> On Tue, Jan 2, 2024 at 5:25 AM Sam Naffaa <hcao.accounting@thekey.com>
>> wrote:
>>
>>> Hi Irin,
>>> What do they mean by registration number? We use the business number to
>>> report the EHT.
>>> Regards,
>>> Sam Naffaa, CMA
>>> 905.337.1288
>>> *Please note my email has changed:*
>>> hcao.accounting@TheKey.com <Madhu.Vijayan@TheKey.com>
>>>
>>> TheKey.com <https://www.thekey.com/>
>>> [image: TheKey] <https://www.thekey.com/>
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>> On Fri, Dec 29, 2023 at 2:16 AM Irin Eva <irin.eva@thekey.com> wrote:
>>>
>>>> Hi Sam,
>>>>
>>>> This has been set up in Ceridian, but Ceridian mentioned that they
>>>> don't have a Registration Number to make remittances if the account goes
>>>> over 2 Million.
>>>>
>>>> Could you pls provide us the Registration Number for Winnipeg EHT?
>>>>
>>>> Thanks,
>>>> Irin
>>>>
>>>> On Wed, Dec 27, 2023 at 10:33 AM Irin Eva <irin.eva@thekey.com> wrote:
>>>>
>>>>> Hi Sam,
>>>>>
>>>>> Thank you for the information.
>>>>>
>>>>> For Winnipeg, our last year payroll didn't exceed $2M.
>>>>>
>>>>> Thanks,
>>>>> Irin
>>>>>
>>>>> On Tue, Dec 26, 2023 at 7:12 AM Sam Naffaa <hcao.accounting@thekey.com>
>>>>> wrote:
>>>>>
>>>>>> Hi Irin,
>>>>>> Hope you had a nice long weekend.
>>>>>> Is the total yearly payroll in MB exceeds $2M?
>>>>>> Please see below information from KPMG for more information about MB
>>>>>> EHT.
>>>>>>
>>>>>> *MB- The Health and Post Secondary Education Tax Levy*
>>>>>>
>>>>>> The Health and Post Secondary Education Tax Levy (HE Levy) is a tax
>>>>>> imposed on remuneration that is paid to employees. The HE Levy is paid by
>>>>>> employers with a permanent establishment in Manitoba. Employers with total
>>>>>> remuneration in a year of $2 million or less are exempted (see note below).
>>>>>> Associated groups (associated corporations/certain corporate partnerships)
>>>>>> must share the $2 million exemption based on the total of their combined
>>>>>> yearly payroll.
>>>>>>
>>>>>>
>>>>>>
>>>>>> *Total Yearly Payroll*
>>>>>>
>>>>>> *Tax Rate*
>>>>>>
>>>>>> $2 Million or Less
>>>>>>
>>>>>> Exempt
>>>>>>
>>>>>> Between $2 Million and $4 Million
>>>>>>
>>>>>> 4.3% on the amount in excess of $2 Million (notch provision)
>>>>>>
>>>>>> Over $4 Million
>>>>>>
>>>>>> 2.15% of the total payroll (the $2 Million is not a deduction)
>>>>>>
>>>>>>
>>>>>>
>>>>>> Employers that do not maintain a permanent establishment in Manitoba
>>>>>> during an entire year are required to prorate the amount of the exemption
>>>>>> or notch provision (as the case may be) for that year.
>>>>>>
>>>>>> Regards,
>>>>>> Sam Naffaa, CMA
>>>>>> 905.337.1288
>>>>>> *Please note my email has changed:*
>>>>>> hcao.accounting@TheKey.com <Madhu.Vijayan@TheKey.com>
>>>>>>
>>>>>> TheKey.com <https://www.thekey.com/>
>>>>>> [image: TheKey] <https://www.thekey.com/>
>>>>>>
>>>>>>
>>>>>>
>>>>>>
>>>>>>
>>>>>>
>>>>>
>>>>> --
>>>>>
>>>>> Irin Nahar Eva, PCP, PLP (CPM)
>>>>>
>>>>> Payroll Specialist
>>>>>
>>>>> *647-932-6409 *ext. 23900051
>>>>>
>>>>> canadapayroll@thekey.com
>>>>>
>>>>> irin.eva@thekey.com
>>>>>
>>>>> [image: See the source image]
>>>>>
>>>>
>>>>
>>>> --
>>>>
>>>> Irin Nahar Eva, PCP, PLP (CPM)
>>>>
>>>> Payroll Specialist
>>>>
>>>> *647-932-6409 *ext. 23900051
>>>>
>>>> canadapayroll@thekey.com
>>>>
>>>> irin.eva@thekey.com
>>>>
>>>> [image: See the source image]
>>>>
>>>
>>
>> --
>>
>> Irin Nahar Eva, PCP, PLP (CPM)
>>
>> Payroll Specialist
>>
>> *647-932-6409 *ext. 23900051
>>
>> canadapayroll@thekey.com
>>
>> irin.eva@thekey.com
>>
>> [image: See the source image]
>>
>

-- 

Irin Nahar Eva, PCP, PLP (CPM)

Payroll Specialist

*647-932-6409 *ext. 23900051

canadapayroll@thekey.com

irin.eva@thekey.com

[image: See the source image]