Health services fund contributions are not collected on which payments?

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Prepare for the Canadian Payroll Compliance Legislation Exam. Study with multiple choice questions, each accompanied by hints and explanations. Get ready for your certification exam!

Multiple Choice

Health services fund contributions are not collected on which payments?

Explanation:
Health services fund contributions are based on earnings from employment and typically apply to regular pay like salary, vacation pay, and bonuses. Retiring allowances, however, are a severance-type payment received when leaving a job and are treated as non-remuneration for HSF purposes. Because they’re not considered ongoing earnings for services rendered, they aren’t subject to Health Services Fund contributions. So, you would not deduct HSF from a retiring allowance, while you would from salary, vacation pay, and bonuses.

Health services fund contributions are based on earnings from employment and typically apply to regular pay like salary, vacation pay, and bonuses. Retiring allowances, however, are a severance-type payment received when leaving a job and are treated as non-remuneration for HSF purposes. Because they’re not considered ongoing earnings for services rendered, they aren’t subject to Health Services Fund contributions. So, you would not deduct HSF from a retiring allowance, while you would from salary, vacation pay, and bonuses.

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