Test 3

Question 1

Employees can deduct a exemption amount from their EHT if they meet what requirements:

Answer 1

Are either:

• private sector with annual On payroll of 5 million or less
• organization that receives funding from the government, but is not controlled by them
• registered charities
• crown corporations subject to tax under the Part 1 Income Tax Act

Question 2

How much can employees deduct on their first total ON remuneration?

Answer 2

$490,000

Question 3

An employer has gross total Ontario remuneration of $675,000. What is the EHT for eligible employer? What is the EHT for a non-eligible employer?

Answer 3

Eligible Employee:
Annual gross total ON remuneration     $675,000
LESS: Exemption Amount     $490,000
Total Taxable ON remuneration   $185,000
Tax Rate            1.95%
EHT Tax Payable      $3,607.50

Non-Eligible Employee:
Annual Gross total ON remuneration $675,000
Tax Rate 1.95%
EHT Tax Payable $13,162.50

Question 4

An employer has gross total Ontario remuneration of $295,000. What is the EHT for eligible employer? What is the EHT if employer is not eligible?

Answer 4

Eligible Employee:
Annual gross total On remuneration    $295,000
LESS: Exemption Amount      $490,000
Total Taxable ON remuneration    0.00
Tax Rate (using chart)     1.465%
EHT Tax Payable   0.00

Non-Eligible Employee:
Annual gross total ON remuneration $295,000
Tax Rate 1.495%
EHT Tax Payable $4321.75

Question 5

Who is NOT eligible for Workers Compensation?

Answer 5

• Sole proprietors
• Partners of organizations/ spouses if not received wages
• Executive officers/ board members
• Independent contractors

Question 6

Workers Compensation Coverage is mandatory if you’re in what field?

Answer 6

Construction

Question 7

What benefits are paid out by Workers Compensation?

Answer 7

• Loses of Wages
• Survivor Benefits
• Medical Expenses
• Vocational an Medical/ Rehabilitation Services
• Burial Expenses
• Clothing Allowances