The Health and Post Secondary Education Tax Levy (HE) is a tax imposed on remuneration that is paid to employees. The HE is paid by employers with a permanent establishment in Manitoba. Effective January 1, 2008, employers with total remuneration in a year of $1.25 million or less are exempted (see note below). Associated groups (associated corporations/certain corporate partnerships) must share the $1.25 million exemption based on the total of their combined yearly payroll.In essence, if your company's payroll is greater than $1.25 million, then you are going to be paying an additional 4.3% tax to the Manitoba government for every dollar between $1.25 million and $2.5 million, and 2.15% on the entire payroll if your payroll is greater than $2.5 million.
Is it any wonder that governments are the largest employer in Manitoba? Notwithstanding that Manitoba recently cut their corporate tax rate to zero, this just shows that they are still unfriendly to
h/t CTF
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