Contribution to the Health Services Fund
As a rule, you must pay a contribution to the health services fund based on the total salary or wages subject to the contribution that you paid to an employee 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).
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.
The contribution rate varies from 2.7% to 4.26%, depending on your total payroll. Certain employers may be eligible for a reduction of the health services fund contribution rate for small and medium-sized businesses in the primary and manufacturing sectors. Certain 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, available on our website
- the 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.