Quebec moves to phase out individual health contributions

Health-related premiums, payroll taxes entrenched in other jurisdictions
By Sheila Brawn
|Canadian Payroll Reporter|Last Updated: 01/04/2016

In December, Quebec passed legislation to phase out a mandatory health contribution that is part of income tax source deductions for employees. The phase-out will occur over three years, starting in 2017.

"By eliminating the health contribution, the government is easing Quebecer’s tax burden and boosting their purchasing power, which will fuel growth and economic development," Finance Minister Carlos Leitão said.

"When fully implemented, the elimination of the health contribution will benefit close to 4.5 million taxpayers and put $1.7 billion back in individuals’ pockets by 2019-2020."