TABLE OF CONTENTS

1. Harmonized Sales Tax (HST)
2. Income Tax Information
3. Municipal Taxation Information
4. Tax Information for New Employers
5. Other Resources

1. Harmonized Sales Tax (HST)

As of July 1st, 2010 the Ontario Retail Sales Tax has been combined with the federal Goods and Services Tax to create the Harmonized Sales Tax (HST). 

If you own or operate a business in Ontario, contact the Ontario Ministry of Revenue to learn about the changes in the way you collect and remit your taxes.

For more information:
visit the website Harmonized Sales Tax (HST) and Comprehensive Tax Package 

Charging Sales Tax Outside of Ontario

The Ministry or agency responsible for administering sales tax in the jurisdiction that the customer is in (i.e. the province or state to which the sale is being made) is the only authority that can confirm the requirements for charging its sales tax and must be contacted for details and registrations.

For further information:
visit the Canada Business web site and select the appropriate Taxation guide for the province or territory you wish to sell to.

Business Number (BN)

The BN is a reference numbering system that replaces the multiple numbers businesses required to deal with government. The BN can encompass one or more of the following accounts: Payroll Deductions, Importer/Exporter account number and Corporate Income Tax.

For further information:
visit the web site: The Business Number and Your Canada Revenue Agency Accounts
see the document Business Number (BN)

2. Income Tax Information

Reporting Self-employed Income - T1-General Income Tax Return

Non-incorporated self-employed individuals use the T1-General income tax return and the Guide to self-employed business income to determine their income tax obligations under the laws of Canada and of all provinces and territories, except Quebec. The Business and Professional Income tax guide supplements the T1-General guide.

For further information:
visit the web sites:
T1 General Returns
Self-employed

Corporate Taxation Info-Guide

The Corporate Taxation Info-Guide is designed to help you navigate through the federal and provincial government programs, services and regulations related to taxation that may apply to a business in Ontario.

For further information:
see the document Corporate Taxation Info-Guide

3. Municipal Taxation Information

For information regarding local taxation requirements, contact your local municipal tax office. Municipal government offices are listed in the government section of your telephone book. A selection of Ontario Municipal Government Web links is available at the following address: Home Pages of Ontario Municipalities

4. Tax Information for New Employers

All employers must contact CRA to register for a Business Number (BN) and open a payroll deduction account. For more information, please see the section on the BN mentioned above.

Payroll Deductions - Tables on Diskette (TOD)

TOD is an electronic version of the payroll deductions tables. TOD calculates the income tax, CPP and EI contributions that the CRA requires an employer to withhold from an employee's income. TOD reduces paper handling and storage for clients. Each TOD diskette, in either Windows or Macintosh versions, includes information for all pay periods and all provinces and territories.

The Canada Revenue Agency (CRA) offers the Payroll Deductions Online Calculator or Tables on Diskette (TOD) to calculate payroll deductions for all pay periods, provinces (except for Quebec), and territories based on the information you provide.

For further information:
visit the web sites:
Payroll
Tables on Diskette (TOD)
Payroll Deductions Online Calculator
T4001 Employers' Guide - Payroll Deductions and Remittances

New Employer Visits

This is a service provided to new employers to educate business about source deductions and their legal obligations and responsibilities.

There is no charge for this service.

For further information:
visit the web site: Employer Visits Program

You may contact CRA directly to inquire about the above-mentioned programs and regulations by calling 1-800-959-5525.

For further information:
visit the web site: Telephone numbers for the Canada Revenue Agency

Employer Health Tax (EHT)

The Employer Health Tax (EHT) is paid by employers who have a permanent establishment in Ontario and who:

• have employees who report for work at the Ontario permanent establishment, or have employees who do not report for work at a permanent establishment of the employer but are paid from an Ontario permanent establishment of the employer; and
• have a total Ontario remuneration for the year (paid to employees or former employees) that exceeds the exemption amount allowed, if any.

For the first $400,000 of the payroll, eligible employers are exempt from paying the Employer Health Tax.

For further information:
please call 1-800-263-7965
visit the web site: Employer Health Tax - Guide for Employers
see the documents:
Employer Health Tax (Ontario)
Ontario Employer Health Tax Exemption

Employment Regulations Info-Guide

This Info-Guide is designed to help you navigate through the federal and provincial government regulations on employment.

For further information:
see the document Employment Regulations Info-Guide

The Ontario Health Premium

Since July 1, 2004 all employees working in Ontario are required to pay an additional tax called The Ontario Health Premium. This tax will is deducted from pay and pensions as part of personal income tax requirements. The premiums range from $60 to $900 a year for people with a taxable income of $21,000 a year or more. For detailed information on The Ontario Health Premium and employer responsibilities regarding payroll and deductions please contact the Canada Revenue Agency.

For further information:
please call 1-800-959-5525
visit the web site: Ontario Health Premium

5. Other Resources

ONT-TAXS

The Ontario Ministry of Revenue is introducing new and improved Ontario Tax Services, or ONT-TAXS, which includes one toll-free number, one business number, new Internet services (ONT-TAXS online), and system improvements to facilitate one-window service delivery.

For further information:
visit the web site: ONT-TAXS, Ontario's Tax Services

Fairness and Taxpayer Rights

This service provides information on the general policy regarding the collection of taxes and amounts owing under the Income Tax Act, the Canada Pension Plan Act, the Employment Insurance Act, the Excise Tax Act, the Customs Act, and the Petroleum and Gas Revenue Tax Act .

For further information:
visit the web sites:
CRA - Fairness and Taxpayer Rights
CRA - Taxpayer Bill of Rights

Objections and Appeals

The Income Tax Act and the Excise Tax Act allow a person to dispute an assessment of taxation by filing a formal objection. These disputes can include Income Tax assessment, GST assessment or other taxes imposed under the Excise Tax Act .

For further information:
see the document Objections and Appeals - Income Tax Act/Excise Tax Act

Rulings and Interpretation Program

The Rulings and Interpretations Program of the CRA provides clients with rulings and technical interpretations of the Excise Tax Act and related statutes, and offers technical publications which explain these rulings and technical interpretations.

For further information:
see the document Services of the Income Tax Rulings Directorate

You may contact CRA directly to inquire about the above-mentioned programs and regulations by calling 1-800-959-5525.

For further information:
see the document Telephone numbers for the Canada Revenue Agency

Voluntary Disclosures Program

Allows taxpayers to come forward and correct inaccurate or incomplete information or disclose material they did not report during previous dealings with the CRA, without penalty or prosecution.

For further information:
visit the web site: Voluntary Disclosures Program

Online Requests for Business

The Online Requests for Business service allows Business clients to electronically ask for certain financial actions to be processed on an account. It lets business clients inform the Canada Revenue Agency via the Internet of an action or review they want them to do, request items they require or inform them of communication items they no longer wish to receive.

For further information:
visit the website: Online Requests for Business

Retention/Destruction of Books & Records

Explains the retention period required for Ontario tax purposes, before books and records can be destroyed.

For further information:
visit the web site: Retention/Destruction of Books and Records

Voluntary Disclosure

Explains what voluntary compliance is and the basic principles under which Ontario's tax system operates.

For further information:
visit the web site: Voluntary Disclosure

Business and Corporate Income Tax Calculator

Use this online calculator to estimate the tax benefits that your business could be eligible for in Ontario.

For further information:
visit the web site: Business and Corporate Income Tax Calculator

• General Information for GST/HST Registrants
• Business number RC2
• Employee or Self-employed?
• Business and Professional Income
• Guide for Canadian Small Businesses
• Payroll Deductions and Remittances
• Changes to Canada Revenue Agency Service and Payment Counters

Related Reading

• Corporate Taxation Info-Guide
• Taxes and GST
• Business Guides

Need more information?

Click: Canada Business
Call: The Business Info Line, a collaboration between ServiceOntario and Industry Canada, at 1-888-745-8888
Visit: Find a Community Partner Location near you

DISCLAIMERS

Information contained in this document is of a general nature only and is not intended to constitute advice for any specific situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

Some of the organizations listed above are not subject to the federal Official Languages Act or the French Language Services Act of Ontario. Their services may not be available in both official languages.