Ontario health tax

Question

I am hoping someone is able to provide me with some information. beginning in 2015, we must calculate and pay Ontario Health Tax at 1.95% of gross payroll. how do I set this to calculate the tax payable. any help is very much appreciated. I am using sage 50 premium

Alwyn · Accepted Answer

This is not an employee deduction so I keep it away from payroll. Each month I take the full amount recorded in the Wages accounts, apply the percentage and create a journal entry to set up the payable. The Other Expenses tab in the employee record could be utilized but only if the same amount is paid each period and the percentage could then be shown as a dollar value. I find it easier to make one calculation per month compared to a calculation per employee and remembering when ever the pay changes.

Sage 50 Canada

Ontario health tax

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