Ontario Health Premium

Frequently Asked Questions for Employers

Where can an employer find the new formulas for payroll deductions?

The payroll deduction formulas for computer programs can be obtained from the Canada Revenue Agency online or by phone at 1 800 959-2221.

Download the payroll deduction formulas

How do employers get the payroll deduction tables?

The Canada Revenue Agency sends e-mail to employers (or pension administrators) that have signed up for its electronic mailing list service about new products (including FAQs) posted on its website.

The Canada Revenue Agency encourages employers to use the payroll deductions online calculator.

Online tool: Payroll deductions online calculator

Sign-up: Canada Revenue Agency electronic mailing list - Payroll

What should an employer do about employees who work in Ontario, but live in another province?

Payroll withholdings (including the Ontario Health Premium) are based on the province in which employees report to work, rather than the province of residence. When employees file their personal income tax and benefit returns, their total taxes deducted for the year (including the Ontario Health Premium) will be reconciled against their total tax payable for the year for their province of residence.

Read on: Canada Revenue Agency – Which provincial or territorial tax tables should you use

Can employers pay the Ontario Health Premium on behalf of their employees?

Employers may arrange to pay the Ontario Health Premium on behalf of their employees by increasing their employees' salaries or by reimbursing their employees for the amount the employees pay for the premium. Under the federal Income Tax Act, payment of the premium by an employer would be considered a benefit received by the employee in the course of employment, and would be required to be included in income as a taxable benefit.

Since the Ontario Health Premium is not being shown separately on pay stubs, but included in the income tax deduction, how will the taxpayer know how much is going toward the premium?

T1 General Ontario personal income tax and benefit returns include a separate section showing the calculation of the premium for the tax year, which will provide information about the amount of the premium that is due.

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