Contribution to the health services fund

As a rule, you must remit to Revenu Québec a contribution to the health services fund based on the aggregate of the remuneration subject to the contribution that you paid to your employees, including

• vacation pay 
• tips 
• taxable benefits

The contribution rate varies from 2.7% to 4.26% inclusively, depending on your total payroll.

Corporations whose first taxation year started before March 30, 2004, are entitled, under certain conditions, to a five-year exemption from the contribution to the health services fund. For salaries or wages paid after June 12, 2003, the exemption applies to 75% of the first $700,000 of salaries or wages paid for the taxation year. To calculate the exemption, use form LE-34-V, Application for an Exemption from the Contribution to the Health Services Fund.

Other exemptions from the contribution to the health services fund may apply, such as the tax holiday for new corporations in remote resource regions. For further information, contact Revenu Québec or consult the Guide for Employers: Source Deductions and Contributions (TP-1015.G-V).