2.1 (1) For the purposes of subsection 2 (2), the taxable total Ontario remuneration paid by an employer during a year is, (a) in the case of an employer who is an eligible employer at any time in the year, the amount by which the total Ontario remuneration paid by the employer during the year exceeds the employer’s exemption amount for the year; or (b) in the case of an employer who is not an eligible employer at any time in the year, the amount of the total Ontario remuneration paid by the employer during the year. 2013, c. 15, s. 3. Exemption amount after 2013, remuneration less than or equal to exemption threshold (2) If the total Ontario remuneration paid by an employer during a year beginning after December 31, 2013 is less than or equal to the exemption threshold for the employer and the employer is an eligible employer at any time in the year and is not associated with any other employers at any time in the year, the exemption amount of the employer for the year is the amount calculated using the formula, A × B/C in which, “A” is, (a) $450,000 for a year in the five-year period consisting of 2014 to 2018, (b) $490,000 for 2019, (c) $1,000,000 for a year in the nine-year period consisting of 2020 to 2028, and (d) the adjusted amount determined under section 2.1.1 for a year in the five-year period consisting of 2029 to 2033 or a subsequent five-year period. “B” is the number of days in the year in which the employer, (a)  has one or more permanent establishments in Ontario, and (b) is an eligible employer, and “C”  is the number of days in the year. 2013, c. 15, s. 3; 2020, c. 5, Sched. 1, s. 1 (1); 2020, c. 36, Sched. 11, s. 1 (1). (2.1) Repealed: 2020, c. 36, Sched. 11, s. 1 (2). Same, associated employers (3) If the aggregate of the total Ontario remuneration paid during a year beginning after December 31, 2013 by an employer who is an eligible employer at any time in the year (the “first employer”) and by each employer who is an eligible employer at any time in the year and that is associated with the first employer at any time in the year is less than or equal to the exemption threshold for the group of employers, the exemption amount for the year of the first employer and of each associated employer shall be determined in accordance with subsection (4). 2013, c. 15, s. 3. Same (4) If all of the employers who are associated with each other at any time in a year beginning after December 31, 2013 and who are eligible employers at any time in the year enter into an agreement in which they allocate to one or more of them for the year an exemption amount that does not exceed the highest exemption amount that would be determined under subsection (2) for any of them if they were not associated in the year, the exemption amount for the year for each of them is the lesser of, (a) the amount allocated to that employer; and (b) the amount that would be that employer’s exemption amount for the year under subsection (2) if that employer were not associated. 2013, c. 15, s. 3. Designated member of partnership (4.1) Despite subsections (2), (3) and (4), the exemption amount of an eligible employer for a year beginning after such date as may be prescribed by the Minister is nil if, subject to subsection (4.2), the employer would be a designated member of a partnership at any time in the year for the purposes of section 125 of the Income Tax Act
(Canada). 2017, c. 8, Sched. 9, s. 1. Same (4.2) For the purposes of subsection (4.1), the reference to “taxation year” in the definition of “designated member” in subsection 125 (7) of the Income Tax Act (Canada) shall be read as “year”. 2017, c. 8, Sched. 9, s. 1. Same (4.3) The date prescribed for the purposes of subsection (4.1) shall not be earlier than December 31, 2017. 2017, c. 8, Sched. 9, s. 1. Exemption amount after 2013, remuneration more than exemption threshold (5) If the total Ontario remuneration paid by an employer during a year beginning after December 31, 2013 is more than the exemption threshold for the employer and the employer is not associated with any other employers at any time in the year, the exemption amount of the employer for the year is nil. 2013, c. 15, s. 3. Same, associated employers (6) If the aggregate of the total Ontario remuneration paid during a year beginning after December 31, 2013 by an employer who is an eligible employer at any time in the year (the “first employer”) and by each employer who is an eligible employer at any time in the year and that is associated with the first employer at any time in the year is more than the exemption threshold for the group of employers, the exemption amount for the year of the first employer and of each associated employer is nil. 2013, c. 15, s. 3. Exemption threshold (7) For the purposes of subsections (2) and (5), the exemption threshold for an employer for a year is the amount calculated using the formula, $5,000,000 × D/E in which, “D” is the number of days in the year in which the employer, (a)  has one or more permanent establishments in Ontario, and (b) is an eligible employer, and “E”  is the number of days in the year. 2013, c. 15, s. 3. Exemption threshold, associated employers (8) For the purposes of subsections (3) and (6), the exemption threshold for a year for a group of employers who are associated with each other at any time in the year is the amount that is equal to the highest exemption threshold that would be determined under subsection (7) for any of them if they were not associated in the year. 2013, c. 15, s. 3. Special rule re registered charities (9) Despite subsection (5) or (6), the exemption amount for a year beginning after December 31, 2013 of an eligible employer who is a registered charity shall be determined in accordance with subsection (2), regardless of the amount of the total Ontario remuneration paid during the year by the registered charity. 2013, c. 15, s. 3. Same (10) If an employer who is not a registered charity is associated at any time in the year with an employer who is a registered charity, the aggregate of the total Ontario remuneration for the purposes of determining the exemption amount for a year beginning after December 31, 2013 of the employer who is not a registered charity shall be calculated without including the total Ontario remuneration paid during the year by the employer who is a registered charity. 2013, c. 15, s. 3. Same (11) The Minister may make regulations providing for special rules that apply to employers who are registered charities and to employers who are associated with registered charities, including rules that exempt those employers from a provision of this section. 2013, c. 15, s. 3. Exemption amount after 2000 and before 2014 (12) For a year that begins after December 31, 2000 and before January 1, 2014, the exemption amount of an employer who is an eligible employer at any time in the year and who is not associated at any time in the year with one or more employers who are eligible employers at any time in the year is the amount calculated using the formula, $400,000 × F/G in which, “F” is the number of days in the year in which the employer, (a)  has one or more permanent establishments in Ontario, and (b) is an eligible employer, and “G”  is the number of days in the year. 2013, c. 15, s. 3. Same, associated employers (13) If all of the employers who are associated with each other at any time in a year beginning after December 31, 2000 and before January 1, 2014 and who are eligible employers at any time in the year enter into an agreement in which they allocate to one or more of them for the year an exemption amount that does not exceed the highest exemption amount that would be determined under subsection (12) for any of them if they were not associated in the year, the exemption amount for the year for each of them is the lesser of, (a) the amount allocated to that employer; and (b) the amount that would be that employer’s exemption amount for the year under subsection (12) if that employer were not associated. 2013, c. 15, s. 3. Delivery of agreement (14) A copy of the agreement referred to in subsection (4) or (13) shall be delivered to the Minister by at least one of the employers on or before the date on which the return for the year is required to be delivered under section 5. 2013, c. 15, s. 3. If no agreement (15) If an eligible employer who is associated at any time in a year with one or more eligible employers does not enter into an agreement for the year that complies with subsection (4) or (13), the exemption amount for the year for each of the employers who is associated is nil. 2013, c. 15, s. 3. Section Amendments with date in force (d/m/y) 1994, c. 17, s. 58 - 01/01/1994; 1996, c. 24, s. 3 - 01/01/1997 2004, c. 16, Sched. D, Table - 01/01/2004 2010, c. 26, Sched. 6, s. 2 - 08/12/2010 2013, c. 15, s. 3
- 12/12/2013 2017, c. 8, Sched. 9, s. 1 - 17/05/2017 2020, c. 5, Sched. 1, s. 1 (1, 2) - 25/03/2020; 2020, c. 36, Sched. 11, s. 1 (1, 2) - 08/12/2020