Contribution to the Health Services Fund: Social Security Agreements
If you are a Québec employer, and you posted an employee to a country that has a social security agreement with Québec providing for reciprocal coverage of health insurance plans, you must pay the employer contribution to the health services fund on the salary or wages paid to the employee.
Under such an agreement, the employee is subject only to the Québec legislation to which reciprocity applies and is deemed to report for work at your Québec establishment.
If you did not pay an employee's salary or wages for the period in which you posted the employee outside Canada in 2020, the following rules apply:
- The employee must inform you in writing, by March 1, 2021, of the salary or wages that he or she was paid for the period.
- You must include the salary or wages in your remuneration subject to the contribution to the health services fund in 2021, because you are deemed to have paid the salary or wages to the employee on March 1, 2021.
The Québec government or one of its mandataries may be required to pay both a contribution to the health services fund and a payroll tax under a statute of another government when one of its employees is posted to an office outside Québec (for example, to the Bureau du Québec à Toronto). In this case, the employer is deemed to have paid an excess contribution to the health services fund.
For more information, see Total Contribution Paid in the Year.
You are not required to pay the employer contribution to the health services fund respecting salaries or wages that you pay to employees who are not resident in Canada and who are temporarily posted to Québec by an employer outside Canada, provided the country concerned has a social security agreement with Québec.
Currently, Québec has an agreement with the following countries:
Negotiations are under way with other countries, and new agreements could take effect during the year.