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Newfoundland and Labrador

Health and Post Secondary Education Tax (HAPSET) in Newfoundland and Labrador

Newfoundland and Labrador charges 2% on remuneration above a $2,000,000 exemption: the simplest structure of the five.

Include the payroll of associated employers: the thresholds apply to the group, not each company.

Health and Post Secondary Education Tax (HAPSET)

Payroll
$2,000,000.00
Exemption
$2,000,000.00
Amount taxed
$0.00
Employer health tax
$0.00

Remuneration at or below the $2,000,000 exemption pays nothing.

How this is calculated

The Health and Post Secondary Education Tax applies at a flat 2% to annual remuneration in the province above the exemption threshold.

The threshold was raised to $2,000,000 from $1,300,000 effective 1 January 2023 and applies to all employers.

As elsewhere, the threshold applies to an associated group rather than to each corporation separately.

The threshold applies to an associated group of employers, not to each corporation separately: splitting payroll across two companies you control does not buy two exemptions.

Comma does not run payroll. It takes the journal your payroll provider produces and keeps the resulting liabilities: including this one: in accounts you can reconcile, so what you owe is a balance rather than something rebuilt at year end.

Where these figures come from

This tool gives an estimate from published rules and rates. It is not accounting, tax or legal advice, and it does not account for every situation: check the source above, or ask your accountant, before you act on it. Nothing you enter is stored or sent anywhere.