If you pay employees who regularly work in Québec, their wages are subject to Québec health services fund (QHSF) contributions. QHSF is an employer-only contribution, so you won't need to deduct it from employee pay cheques.
QHSF Contribution Rate
Your contribution rate is based on the total salary or wages you pay to employees, including employees who don't work in Québec or whose wages are exempt from QHSF contributions. When you set up payroll, we'll ask you for some information to help us calculate your rate. Some of the things we might ask are:
- How long have you been running payroll?
- Select the number of tax years you have paid employees in. A tax year runs from the beginning of January to the end of December
- Example: Jeffrey paid employees for the first time in December and it's now February. The new tax year started January 1, so this is Jeffrey's second tax year running payroll.
- How much you paid your Québec employees last tax year?
- Enter your total payroll for the purpose of determining the contribution rate (box 28) from your Relevé 1 Summary for last year.
- How much you've contributed to the health services fund so far this year?
- To find your total, add the health services fund contribution amounts on all the TPZ-1015 forms you've sent to Revenu Québec this year.
- If you qualify for a reduced rate?
- Certain businesses in the primary or manufacturing sectors qualify for a reduced health services fund contribution rate. Check the box if you qualify for the reduced rate.
A change in the calculation of the Quebec Health Services Fund (QHSF) contribution rates came into effect on January 1, 2019.
If you are an employer other than a public-sector employer and your total payroll for 2019 is less than $6,000,000, you can use the reduced contribution rate for your sector of activity to calculate your contribution for the year.
Determine your QHSF contribution rate
|Health services fund contribution rates for 2019|
|Total payroll (TP)||Primary and manufacturing sectors1||Service and construction sectors||Public sector|
|$1,000,000 or less||1.25%||1.70%||4.26%|
|$1,000,001 to $5,999,999||0.648% + (0.602% × TP/1,000,000)2||1.1880% + (0.5120% × TP/1,000,000)2||4.26%|
|$6,000,000 or more||4.26%||4.26%||4.26%|
|1The activities concerned are those grouped under codes 11 (Agriculture, Forestry, Fishing, and Hunting), 21 (Mining and Oil and Gas Extraction), or 31-33 (Manufacturing) of the North American Industry Classification System (NAICS) Canada. Visit the Statistics Canada website for a description of the codes.|
2The 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.
Visit the Revenu Québec website for more information.
Note: For more on how your contribution rate is calculated and who qualifies for a reduced rate, see Revenu Québec's Guide for employers: Source deductions and contributions.
When do I remit my contributions?
Remit your health services fund contributions to Revenu Québec along with your monthly TPZ-1015.
What if my rate changes?
If your rate changes after initial setup please contact our Support team to have this updated for you.