Government of Ontario: Ministry of Finance

Schedule 2
Associated Employers Exemption Allocation

Employer Health Tax
33 King Street West
PO Box 640
Oshawa ON L1H 8P5
1 866 ONT-TAXS (1 866 668-8297)
1 800 263-7776 (TTY)
Website: ontario.ca/finance

Each member of an eligible employer’s associated group must enter into an agreement and complete this schedule allocating the tax exemption for the year. A copy of this schedule MUST be submitted by each employer in the group with the annual return. If an associated employer does not enter into the allocation agreement for the year, all of the employers in that associated group will be denied the tax exemption.
Employers are required to complete an annual return for each account held as an associated employer and/or a multiple accounts employer.

Legal name of employer

Business Number / EHT account number

Please keep a copy for your records.


A. Business Number/ EHT account number	B. Total Ontario remuneration for the year (insert applicable year)	C. Number of days as an employer in Ontario	D. Maximum exemption available for each employer ( C ÷ 365 × $400,000 )	E. Allocated exemption amount	F. Taxable Ontario remuneration ( B minus E )	G. Signature of authorized official
1. Business Number/EHT account number	1. Total Ontario remuneration for the year	1. Number of days as an employer in Ontario	1. Maximum exemption available for each employer ( C ÷ 365 × $400,000 )	1. Allocated exemption amount	1. Taxable Ontario remuneration ( B minus E )	1. Signature of authorized official
2. Business Number/EHT account number	2. Total Ontario remuneration for the year	2. Number of days as an employer in Ontario	2. Maximum exemption available for each employer ( C ÷ 365 × $400,000 )	2. Allocated exemption amount	2. Taxable Ontario remuneration ( B minus E )	2. Signature of authorized official
3. Business Number/EHT account number	3. Total Ontario remuneration for the year	3. Number of days as an employer in Ontario	3. Maximum exemption available for each employer ( C ÷ 365 × $400,000 )	3. Allocated exemption amount	3. Taxable Ontario remuneration ( B minus E )	3. Signature of authorized official
4. Business Number/EHT account number	4. Total Ontario remuneration for the year	4. Number of days as an employer in Ontario	4. Maximum exemption available for each employer ( C ÷ 365 × $400,000 )	4. Allocated exemption amount	4. Taxable Ontario remuneration ( B minus E )	4. Signature of authorized official
5. Business Number/EHT account number	5. Total Ontario remuneration for the year	5. Number of days as an employer in Ontario	5. Maximum exemption available for each employer ( C ÷ 365 × $400,000 )	5. Allocated exemption amount	5. Taxable Ontario remuneration ( B minus E )	5. Signature of authorized official
6. Business Number/EHT account number	6. Total Ontario remuneration for the year	6. Number of days as an employer in Ontario	6. Maximum exemption available for each employer ( C ÷ 365 × $400,000 )	6. Allocated exemption amount	6. Taxable Ontario remuneration ( B minus E )	6. Signature of authorized official
7. Business Number/EHT account number	7. Total Ontario remuneration for the year	7. Number of days as an employer in Ontario	7. Maximum exemption available for each employer ( C ÷ 365 × $400,000 )	7. Allocated exemption amount	7. Taxable Ontario remuneration ( B minus E )	7. Signature of authorized official
8. Business Number/EHT account number	8. Total Ontario remuneration for the year	8. Number of days as an employer in Ontario	8. Maximum exemption available for each employer ( C ÷ 365 × $400,000 )	8. Allocated exemption amount	8. Taxable Ontario remuneration ( B minus E )	8. Signature of authorized official
9. Business Number/EHT account number	9. Total Ontario remuneration for the year	9. Number of days as an employer in Ontario	9. Maximum exemption available for each employer ( C ÷ 365 × $400,000 )	9. Allocated exemption amount	9. Taxable Ontario remuneration ( B minus E )	9. Signature of authorized official
10. Business Number/EHT account number	10. Total Ontario remuneration for the year	10. Number of days as an employer in Ontario	10. Maximum exemption available for each employer ( C ÷ 365 × $400,000 )	10. Allocated exemption amount	10. Taxable Ontario remuneration ( B minus E )	10. Signature of authorized official
11. Business Number/EHT account number	11. Total Ontario remuneration for the year	11. Number of days as an employer in Ontario	11. Maximum exemption available for each employer ( C ÷ 365 × $400,000 )	11. Allocated exemption amount	11. Taxable Ontario remuneration ( B minus E )	11. Signature of authorized official
			Total available exemption amount	Total available exemption amount

If insufficient space, attach list.

Person to contact for enquiries concerning
this schedule:

First name (please print) Last name
Position/Title
Date
Telephone number

Instructions to complete the Schedule 2 – Associated Employers Exemption Allocation

Column A
Enter the business number or Employer Health Tax (EHT) account number (or legal name if you do not yet have an account number) for each associated employer within the group, who has a permanent establishment in Ontario. An associated employer that is also a multiple accounts employer should enter only the designated account number used to submit Schedule 1 – Multiple Accounts.

Note: Multiple accounts are treated as one EHT account on Schedule 2.

The associated group includes all employers associated on December 31 and all employers who were associated during the year, but ceased to have total Ontario remuneration and/ or a permanent establishment in Ontario, during the year.

Column B
Enter the total Ontario remuneration of each of the associated employers. If one of the associated employers is also a multiple accounts employer, enter the Total Ontario remuneration amount (in column B of Schedule 1 – Multiple Accounts) for that employer.

Note: An associated company with a permanent establishment in Ontario and no Ontario payroll must enter zero in this column and give reasons; e.g., holding company.

Column C
Enter the number of days that each employer had Ontario remuneration and a permanent establishment in Ontario.

Column D
Divide each number in column C by the number of days in the year and multiply the result by $400,000. This will give the maximum exemption available to each employer.

Column E
The highest amount in column D is the total available exemption amount for the associated group. From this amount, allocate an exemption amount to each employer in the group in column E. The amount for any specific employer in the group cannot exceed the amount in column B or D that corresponds to that employer.

An associated employer with a single EHT account should enter its allocated exemption amount from column E on line 2 of its annual return.

An associated employer with multiple EHT accounts should enter its allocated exemption amount from column E as the total of column C of Schedule 1.

Column F
Subtract column E from column B and enter the result in column F.

Column G
An authorized officer for each employer within the associated group must sign this column to authorize the exemption amount allocated to each of them.

Government of Ontario: Ministry of Finance

Schedule 2 Associated Employers Exemption Allocation

Instructions to complete the Schedule 2 – Associated Employers Exemption Allocation

Schedule 2
Associated Employers Exemption Allocation