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OntarioPassed40th Parliament, 2nd Session

Bill 105 explained in plain English

Supporting Small Businesses Act, 2013

Ontario legislature bill summary, status, timeline, sponsor, votes, and official sources.

At a glance

Jurisdiction
Ontario Legislature
Legislature / Parliament
Legislative Assembly of Ontario
Session
40th Parliament, 2nd Session
Bill number
Bill 105
Full title
Supporting Small Businesses Act, 2013
Current status
Passed
Latest event
Royal Assent received
Last updated
Dec 12, 2013

Official Legislative Assembly of Ontario snapshot for 40th Parliament, 2nd Session. Representative vote breakdowns appear when the Assembly publishes an Ayes and Nays page for the bill.

Chamber
Legislative Assembly of Ontario
Current Stage
Royal Assent received
Latest Activity
Dec 12, 2013
Plain-language explanation
In plain English (our explanation)

Our plain-language take, written for civic education.

Source: By PoliticalData.ca

AI-assisted, reviewed before publishing
Short Version

Bill 105, the Supporting Small Businesses Act, 2013, amends the Employer Health Tax Act to modify employer exemption amounts and their calculation methods.

What It Means

This bill makes changes to the Employer Health Tax Act. It increases the exemption amount for employers for several years and changes how the exemption amount is calculated, especially for associated employers and registered charities. It also introduces a new process for adjusting the exemption amount for inflation.

What This Bill Does
  • Increases the exemption amount for employers from $400,000 to $450,000 for the years 2014 to 2018.
  • Introduces a new method for adjusting the exemption amount for inflation every five years starting in 2019.
  • Changes the conditions under which an employer's exemption amount becomes zero, particularly for employers that exceed an 'exemption threshold'.
  • Introduces a new 'exemption threshold' of $5,000,000 for employers.
  • Modifies how the exemption is calculated for associated employers, requiring them to potentially allocate their exemption amount through an agreement.
  • Introduces specific rules for registered charities, generally ensuring their exemption amount is calculated without reference to their total Ontario remuneration and that their remuneration is not included when calculating the aggregate remuneration of associated employers.
  • Repeals the definition of 'small employer'.
  • Makes technical amendments to the Employer Health Tax Act and related definitions.
Who Is Affected
  • Employers in Ontario who pay the Employer Health Tax.
  • Associated employers.
  • Registered charities in Ontario.
  • Employers who have permanent establishments in Ontario.
Rights, Duties, Or Obligations
  • Employers will have a new exemption amount that changes over time and is subject to inflation adjustments.
  • Associated employers may need to enter into agreements to allocate their exemption amount.
  • Registered charities have specific rules regarding their exemption calculation.
  • Employers must ensure their total Ontario remuneration does not exceed the new exemption threshold to benefit from the exemption, with special considerations for associated employers.
  • The Minister is authorized to make regulations for special rules for registered charities and associated registered charities.
Important Dates
  • The Act came into force on the day it received Royal Assent (December 12, 2013).
  • The increased exemption amount of $450,000 applies for the 2014 to 2018 calendar years.
  • Starting in 2019, the exemption amount will be adjusted for inflation every five years.
Financial Or Tax Impacts
  • The exemption amount for Employer Health Tax is increased for the 2014-2018 period.
  • The calculation of taxable remuneration subject to the Employer Health Tax is altered due to changes in exemption amounts and thresholds.
  • The introduction of an exemption threshold may result in some employers no longer qualifying for an exemption.
Enforcement Or Penalties
  • If associated employers do not enter into a required agreement, their exemption amount for the year will be nil (zero).
Uncertainties Or Limits
  • The specific calculation of the Consumer Price Index for adjusting the exemption amount for inflation in future periods is detailed but relies on external data (Statistics Canada).
  • The bill authorizes the Minister to make regulations for special rules concerning registered charities, the details of which are not provided in the bill text.
  • The bill does not specify what happens if an agreement for associated employers is not delivered to the Minister by the required date, other than stating the exemption will be nil if no agreement is made.
Laws Or Regulations Affected
Employer Health Tax Act
amends

Modifies the calculation and amount of exemption for employers paying the Employer Health Tax, introduces an exemption threshold, and creates special rules for associated employers and registered charities.

Source: Sections 1, 2, 3, and 4

Income Tax Act (Canada)
amends

Adds a definition for 'registered charity' by referencing the definition in the Income Tax Act (Canada).

Source: Section 1 (2)

Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.

Official text

Process Snapshot

Step 1
First reading
Sep 24, 2013
Step 2
Second reading
Nov 4, 2013
Step 3
Committee review
Dec 4, 2013
Step 4
Third reading
Dec 12, 2013
Step 5
Royal assent
Dec 12, 2013

Vote Summary

No published recorded division

This bill does not have a published recorded division in the current official sources, so representative-by-representative vote counts are not shown.

Sponsor
Charles Sousa
Sponsor party or district not listed
Jurisdiction
Ontario Legislature

No published representative vote breakdown

The current official sources do not publish a recorded division breakdown for this bill, so there is no representative-by-representative table to show.

Official sources

Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.

How this data is sourced