Periodic Remittances of the Contribution to the Health Services Fund
Use an estimated contribution rate to calculate the periodic remittances of the contribution to the health services fund you have to make in the year because the actual contribution rate for the year will only be determined when you file the RL-1 summary (form RLZ-1.S-V).
The estimated contribution rate for a new employer is not calculated in the same way as it is for other employers.
If you expect that your total payroll for the year will be less than your total payroll for the previous year and that, as a result, your actual contribution rate for the year will be less than the estimated rate you would normally be required to use, you may use a lower rate to calculate your periodic remittances of the contribution to the health services fund for the year.
New employers
For the first two consecutive years in which you have to pay the contribution to the health services fund, your contribution rate for each periodic remittance corresponds to the rate that would apply if your total payroll for the year were equal to the portion of your total payroll paid from the beginning of the year to the end of the period covered by the remittance. The contribution rate must be adjusted each remittance period to take into account the cumulative total payroll for the preceding periods.
You are an employer in the primary and manufacturing sectors. You have to pay the contribution to the health services fund for the first year, and you have a monthly remittance frequency.
| Month | Total payroll for the month | Cumulative total payroll | Contribution rate1 | Date of remittance |
|---|---|---|---|---|
| January | $425,460 | $425,460 | 1.25% | February 15 |
| February | $474,540 | $900,000 | 1.25% | March 15 |
| March | $611,420 | $1,511,420 | 1.49% | April 15 |
| April | $875,875 | $2,387,295 | 1.89% | May 15 |
| May | $1,219,457 | $3,606,752 | 2.46% | June 15 |
| June | $3,940,360 | $7,547,112 | 4.26% | July 15 |
- The contribution rate must be rounded off to two decimal places. If the number in the third decimal place is 5 or more, round up the number in the second decimal place.
Other employers
For years following the first two consecutive years for which you paid the contribution to the health services fund, your contribution rate will be the rate that would apply if your total payroll for the year were the same as your total payroll for the previous year.
You are an employer in the primary and manufacturing sectors. You are subject to the contribution to the health services fund for a third consecutive year, and you have a monthly remittance frequency.
| Total payroll for 2023 | $950,000 |
|---|---|
| Contribution rate for 2024 that would apply if the total payroll for 2024 were the same as the total payroll for 2023 | 1.25% |
| Salaries or wages paid during the month of January 2024 | $35,000 |
| Contribution to the health services fund payable for January: $35,000 × 1.25% | $437.50 |