Ontario health care funding is financed through what mechanism?

• A. A payroll tax on both employers and employees
• B. A payroll tax only on employers
• C. A payroll tax only on employees
• D. General funding with no payroll tax

Answer: (A)

The mechanism being tested is that health care in Ontario is funded through payroll-related contributions. Employers pay a payroll tax (the Employer Health Tax) on their total payroll, and employees contribute through payroll deductions that support health services. This creates a funding stream tied to payroll activity, funding hospitals and OHIP from both sides of the payroll equation. The other options don’t fit because health care funding isn’t funded solely by employer-only payroll taxes, nor solely by employee payroll deductions, and it isn’t financed entirely from general funding without any payroll tax component.