--000000000000d61a23060e82fc1f Content-Type: multipart/alternative; boundary="000000000000d61a22060e82fc1e" --000000000000d61a22060e82fc1e Content-Type: text/plain; charset="UTF-8" Content-Transfer-Encoding: quoted-printable 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? What 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 > [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 milli= on >> 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 notc= h >> 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 >> tax rate can be determined? Regardless of the tax rate exemption, if th= e >> annual amount is greater than the exemption threshold amongst all >> associated entities, the registration and filing will need to be complet= ed >> and hence the requested information as requested will be requi