Published: January 2010
Content last reviewed: June 2010
These instructions apply to 2009 and prior years only. For 2010 and later years, please refer to the revised instructions and form.
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 employers 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 (for 2009 and prior years) [PDF - 337 KB].
Note: Multiple accounts are treated as one EHT account on Schedule 2 - Associated Employers Exemption Allocation (for 2009 and prior years) [PDF - 348 KB].
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.
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 write zero in this column and give reasons; e.g., holding company.
Enter the number of days that each employer had Ontario remuneration and a permanent establishment in Ontario.
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.
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.
Subtract column E from column B and enter the result in column F.
An authorized officer for each employer within the associated group must sign this column to authorize the exemption amount allocated to each of them.