Configure Reduced Quebec Health Services Fund (HSF) Rates

Client administrators can configure a reduced Quebec Health Services Fund (HSF) rate. The reduced rate applies to qualified Quebec legal entities identified as small or mid-sized businesses (SMBs) in the primary and manufacturing sectors with less than $5 million in annual payroll.

To configure reduced Quebec HSF rates:

1. Go to Org Setup > Org Payroll Setup > Legal Entity and select a legal entity.
2. Click the Tax Authorities tab and select the Quebec Health Services Fund.
3. In the Tax Setting section to the right, click Add.
4. In the Effective Start field, enter the date that the reduced rate takes effect.
5. (Optional) In the Effective End field, enter the date that the rate expires.
6. Select the Exempt Tax And Taxable Wages checkbox, if necessary.
7. In the Gross Annual Payroll field, enter the amount for the setting.
8. In the Reduction of the HSF Contribution Rate drop-down list, select SMB in the Primary or Manufacturing Sector.
9. Click Save.

When configured, Dayforce applies a reduced HSF rate based on the legal entity's gross annual payroll total.