Quebec extends credit on employer contributions to Health Services Fund

Quebec is providing a 12-week extension of the credit on employer contributions to the Health Services Fund in respect of employees on paid leave.

The additional assistance will now be in force from March 15 to Nov. 21, 2020, the entire duration of the wage subsidy.

"The labour market is gradually reviving but we must continue to support businesses to keep as many people as possible at work,” says Eric Girard, minister of finance. “We are continuing to closely monitor the situation and will adjust our initiatives to respond as best we can to the needs of Quebecers and businesses so that the Quebec economy gets back up to speed as quickly as possible."

The credit program offsets costs not covered by the Canada Emergency Wage Subsidy (CEWS) program. Quebec implemented the program on April 30.

Under the program, an employer in the province can benefit from CEWS and the credit on employer contributions to the Health Services Fund. The employer can request for an amount corresponding to their contribution to the fund in respect of a specific employee’s salary for a week when the employee is on paid leave. The week of the paid leave must be covered by the qualifying period.

The credit on employer contribution to the Health Services Fund is granted for the same qualifying periods as the CEWS.

Also, three new periods will be added to the credit program’s qualifying period, to be aligned with the CEWS:

• The period beginning on Aug. 30,2020 and ending on Sept. 26, 2020.
• The period beginning on Sept. 27, 2020 and ending on Oct. 24, 2020.
• The period beginning on Oct. 25, 2020 and ending on Nov. 21, 2020.

Many Canadian employers are taking advantage of the Canada Emergency Wage Subsidy (CEWS) program – and finding it effective, according to a survey.

At the end of July, the federal government announced that the CEWS program would continue until Dec. 19, 2020 – bringing with it added risk and complexity, say experts.