Health Services Fund (HSF)
Each employer who has its permanent establishment in Quebec has to remit HSF (Health Services Fund) to Revenue Quebec. HSF is an employer contribution to the health services fund. Quebec Health Services Fund is based on the total of the remuneration subject to the contribution that employers paid to their employees in Quebec.
Exemption from Health Services Fund (HSF)
Some employers may be exempted from the contribution to the health services fund (HSF) under some special circumstances.For more details visit Exemption from HSF
Health Services Fund Contribution 2013
Employer contribution to the health services fund is the result obtained when Employer subtract the exempted remuneration from the total remuneration paid. That is the total contribution of an employer towards HSF and then multiply that amount by a rate based on last year payroll. The rate varies from 2.7% to 4.26% as one can see from the following table
Quebec Health Services Fund (HSF)
| Total Annual payroll dollars | 2012 ( % ) | 2013( % ) |
| $ 1 Million or less | 2.70% | 2.70% |
| Greater than $ 5 Million | 4.26% | 4.26% |
To calculate the contribution between $1 - $5 million, one can use the following formula which is also listed in Guide TP -1015.F-V (2013-01)
How to Calculate Employer HSF contribution
Employer contribution to health services fund can be calculated by using following formulas which are also listed in the TP-1015.F-V
D2 = Employer's contribution to the health services fund for the pay period
D2= W x S2
Where
W = Contribution rate (%) based on total payroll = 2.31 + (0.39 x S)
Where
S = 1, if the total payroll is less than or equal to $1,000,000
S = 5, if the total payroll is greater than or equal to $5,000,000
S = total payroll / 1,000,000 (If the total payroll is between $1,000,000 & $5,000,000)
S2 = Total salaries or wages paid for the pay period of which employers are required to pay a contribution towards the health services fund (HSF).