Ontario 2013 Budget – Ontario Trillium Benefit and Employer Health Tax

All proposals are subject to legislative approval.

Ontario Trillium Benefit (OTB)

The Ontario 2013 Budget proposes to modify the OTB so that, beginning with 2014 benefits, each recipient can choose to receive the benefit either monthly or in a single payment at the end of the benefit year.

Tax filers would choose which option they want when they file their 2013 income tax return in 2014.  However, those receiving an annual benefit of $360 or less will be paid in a single payment in July 2014 – they cannot opt for monthly payments.  Others opting for a single payment would receive the single payment for 2014 benefits in June 2015.  Those opting for monthly payments would receive the payments from July 2014 through to June 2015.

Employer Health Tax (EHT)

The budget proposes to eliminate the EHT exemption of $400,000 for private-sector employers, including groups of associated employers, with annual Ontario payrolls over $5 million.  For small employers, including small businesses, charities and not-for-profit organizations, the exemption would be increased from $400,000 to $450,000.  These changes would take effect January 1, 2014.  The exemption would be adjusted for inflation every 5 years using the Ontario Consumer Price Index.  At projected inflation rates the exemption would increase to $500,000 in 2019.