Quebec health services fund (QHSF)
To calculate your Worldwide Wage amount to determine your QHSF rate, add the total salaries and wages paid in the year and the total salaries and wages paid by any associated employer (even if the associated employers carry out their activities outside of Quebec).
As a reminder, in 2021, the upper total payroll threshold for the QC HSF (beyond which the rate is 4.26%) was $6.0M.
The following rates apply to the Quebec Health Services Fund for 2021:
- If your total Worldwide Wages for 2021 are equal to or less than $1 million, your rate will be 1.65%.
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If your total Worldwide Wages for 2021 are greater than $1 million but less than $6 million, your rate is based on the following formula:
W (%) = 1.175+ (0.4745% x S), where
W represents the rate and S the quotient obtained by dividing your total Worldwide Wages for 2021 by $1,000,000.
The rate calculation must be rounded to the second decimal. If the third decimal is equal to or greater than 5, the second decimal must be rounded up to the nearest second decimal.
- If your total Worldwide Wages for 2021 are over $6.5 million, your rate will be 4.26%.
If an employer is eligible for a reduced rate because they are in the primary or manufacturing sectors, the contribution rate is determined as follows:
- If total Worldwide Wages for 2021 are equal to or less than $1 million, the rate is 1.25%.
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If total Worldwide Wages for 2021 are greater than $1 million but less than $6.5 million, the rate is based on the following formula:
W (%) = 0.7027 + (0.5473% x S), where
W represents the rate and S the quotient obtained by dividing the total payroll for 2021by $1,000,000.
- If your total Worldwide Wages for 2021 are over $6.5 million, your rate is 4.26%.
Note: Your actual contribution rate is determined by using your TOTAL Worldwide Wages amount for 2021. The Health Services Fund contributions reconciliation at year-end may indicate that remuneration, subject to QHSF, is more than was originally estimated for the purpose of establishing the correct contribution rate. Employers are then expected to modify their QHSF rate, and make any required adjustments, before the last remittance of the year. Employers who have under-remitted should not delay addressing this until after they file the Summary of Source Deductions and Employer Contributions – RLZ-1.S-V since interest will be added to the amount payable and a penalty may be imposed. For further details, see the back of the RL-1 Summary.
As of the 2021 tax year, the Quebec Health Services Fund reduction no longer exists for employers who create positions for, or hire, new employees in certain specialized fields. Employers who were eligible for this reduction no longer need to submit form LE-34.1.12-V to Revenu Quebec.
The upper total payroll threshold for QHSF is expected to increase from $6.5 million to $7.0 million in 2022.