Contribution to the Health Services Fund
This page does not take into account the tax measures pertaining to the credit for contributions to the health services fund in respect of employees on paid leave due to the COVID-19 pandemic. These measures were announced on April 30, May 29 and August 17, 2020. For more information, see the Tax News articles published on April 30, June 2, and August 19, 2020.
You must pay a contribution to the health services fund corresponding to the total salaries or wages subject to the contribution that you pay to your former, current and future employees multiplied by the applicable contribution rate. The rate is based on your total payroll for the year and your sector of activity.
The contribution is required if one or more of the basic conditions for making source deductions and paying employer contributions are met (check whether any of the special cases apply).
The contribution to the health services fund is payable periodically, according to your remittance frequency, using the payment option that is most convenient for you.
Special rules apply to an employer that is an Indian, an Indian band or a band council.
You can use any of the following to calculate the contribution to the health services fund:
- WebRAS or WinRAS, tools for calculating source deductions and employer contributions;
- the Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V).
The contribution to the health services fund payable for the year is the total remuneration subject to the contribution that you paid in the year minus the exempted remuneration, multiplied by the rate that applies to your sector of activity and your total payroll for the year.
The contribution to the health services fund payable for the year is determined when you file the RL-1 summary. For more information, see RL-1 Summary – Summary of Source Deductions and Employer Contributions.