Contribution to the Health Services Fund
As a rule, you must pay a contribution to the health services fund based on the total salaries or wages subject to the contribution that you paid to your employees if one or more of the basic conditions for making source deductions and employer contributions are met (check whether any of the special cases apply).
The contribution rate is based on your total payroll for the year. The health services fund contribution rate will be gradually reduced over a period of five years beginning in 2017 if your total payroll is less than $5 million. Under certain conditions, you may be able to take advantage of an additional reduction of the health services fund contribution rate for small and medium-sized businesses in the primary or manufacturing sector or of a temporary reduction for the creation of specialized jobs in the natural and applied sciences sector.
Public-sector employers must pay a contribution of 4.26%, regardless of their total payroll. In certain cases, employees may be required to pay a contribution to the health services fund when they file their income tax return.
Calculating your contribution
To determine your contribution to the health services fund, you can use:
- the WinRAS – Calculation of Source Deductions and Employer Contributions application;
- the formulas in the guide entitled Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V).
See Calculating the Contribution to the Health Services Fund for information on how to calculate your contribution to the health services fund.
Special rules apply to an employer that is an Indian, an Indian band or a band council.
If you stop making remittances of source deductions and employer contributions, the deadlines for filing your documents differ depending on whether you stopped operating your business or no longer have employees.