Employer Provincial Tax (EHT, HE Levy, HAPSET)

Last updated: October 27, 2025

Employer Provincial Tax (EPT) is a provincial payroll tax that applies once a business’s annual payroll exceeds a specific threshold. The system automatically calculates EPT and helps forecast your liability, reducing year-end surprises and supporting compliance.

Supported provinces

EPT is currently supported in:

  • British Columbia (Employer Health Tax)

  • Ontario (Employer Health Tax)

  • Manitoba (Health and Education Levy)

  • Newfoundland and Labrador (HAPSET)

  • Quebec (Health Service Fund)

Note: The system does not currently process or remit EPT payments, except for the Health Services Fund (HSF). Clients are responsible for submitting EPT payments directly to their respective provincial tax authority.

What the system does

When EPT is enabled, the system:

  • Calculates EPT automatically in each payroll run

  • Applies the correct thresholds and rates based on the province of employment

  • Forecasts total EPT obligations using year-to-date earnings

  • Generates detailed EPT reports for filing and reconciliation

Default setup

No configuration is needed to start. If your business operates in a supported province, EPT is already enabled.

However, in some cases, you may want to adjust the system defaults—for example, if you:

  • Expect seasonal or unusual changes in annual payroll

  • Want to apply a custom exemption amount, rate, or total remuneration

  • Operate across multiple provinces and need province-specific overrides

The system does not automatically calculate the Health Services Fund (HSF) rate. A default rate of 4.26% is applied; however, you can manually adjust this rate to reflect the applicable rate by adding an EHT override.

How to create an EHT override

You can enter custom EPT values in Business settings > EHT.

1. Click + Add EHT Override

  • This opens a form that allows you to adjust specific elements of the EHT calculation.

2. Complete the override form

Field

Description

Province

Select the province the override applies to

Type

Choose the override type (e.g. annual remuneration, exemption amount, or rate)

Override amount

Enter the adjusted value for the selected type

Effective from/to

Define the time period the override applies to

Notes

(Optional) Add a comment for context or tracking purposes

All fields marked with an asterisk (*) are required.

3. Click Save

  • Your override will be saved and applied to future payroll runs within the effective date range.

Important notes about overrides:

  • Overrides apply only to future payrolls—they do not affect past runs

  • Multiple overrides can be added if your business operates in more than one province

  • You can return to the EHT tab to edit or remove overrides as needed

EPT reporting and forecasting

The system provides a downloadable EPT report, which includes:

  • Total EPT calculated to date

  • Forecasted year-end liability

  • Breakdown by employee and pay period

Use this report to monitor progress toward provincial thresholds and prepare for year-end filings.