Total Payroll – Health Services Fund
Total payroll is used only to determine your health services fund contribution rate for the year. For a calendar year, your total payroll equals the total remuneration paid during the year by you and by any employer associated with you on December 31 of the calendar year, even if you or the associated employer carry on activities outside Québec. The remuneration includes:
- the remuneration paid in Québec or elsewhere during the calendar year, including remuneration that gives entitlement to a credit for contributions to the health services fund
- the salaries and wages paid to foreign employees temporarily posted to Québec and who are covered by a social security agreement, even if you are not required to pay a contribution to the health services fund respecting these salaries and wages
Take into account associated employers on December 31 of a calendar year on a worldwide basis, regardless of where they carry out their activities and of whether they are subject to the Taxation Act.
Subject to certain adaptations, the rules set forth in the Taxation Act respecting associated corporations must be applied to determine whether two or more employers are considered to be associated on December 31 of the year.
For more information about associated corporations, see the Guide de la déclaration de revenus des sociétés (CO-17.G) (available in French only).
Total payroll attributable to activities in the primary and manufacturing sectors
When calculating the percentage of the total payroll attributable to activities in the primary and manufacturing sectors, you must take into account the salaries and wages of employees whose functions are related to those activities.
The primary and manufacturing sector activities are classified under codes 11, 21 and 31 to 33 of the North American Industry Classification System (NAICS). For a description of the codes, visit the Statistics Canada website.
An administrative assistant works for a small business in the manufacturing sector. The assistant's salary must be included in the portion of the total payroll attributable to activities in the primary and manufacturing sectors because their functions are related to those activities.
A medium-sized business in the manufacturing sector has a division that delivers finished products. The wages the division pays an employee who delivers the products must not be included in the portion of the total payroll attributable to activities in the primary and manufacturing sectors, because the employee's functions are not related to such activities.
Temporary exemption from health services fund contributions for businesses in the agricultural, forestry and fishing sectors
On January 28, 2026, the Minister of Finance of Québec announced that the rules governing the temporary exemption from health services fund contributions for businesses in the agricultural, forestry and fishing sectors would be broadened. The contribution holiday was first introduced as part of the economic and financial update published on November 25, 2025.
For more information, see the Tax News article entitled Broadening of the Temporary Exemption From Health Services Fund Contributions for the Agriculture, Forestry and Fishing Sectors.