Health Services Fund – Quebec

Employers

The employer HSF contribution rate is generally 2.7% for employers whose total worldwide annual payroll for all associated corporations is $1,000,000 or less. The rate varies from 2.7% to 4.26% for employers whose total payroll is greater than that amount.15


15 The reduction of HSF contributions for employees 65 years of age and over initially expected as of 2013 has been postponed for an undertermined amount of time.

Individuals

Every individual, other than a trust, resident in Quebec has to pay an HSF contribution. All of the individual’s income (i.e. business income earned in Quebec, pension income, property income and capital gains) is subject to the contribution except, among others, employment income, taxable support payments received, the grossed-up portion of dividends received from taxable Canadian corporations as well as any OAS benefits. Certain deductions can reduce the amount subject to the contribution. The contribution must be included in the calculation of instalments to be paid by individuals.

Income subject to contribution16 2013 contribution
$0 – $14,000
$14,001 – $29,000
$29,001 – $133,670
$133,671 and more
No contribution
1% of income > $14,000
$150 plus 1% of income > $48,670
$1,000

16 Indexed annually.