How are the health premiums collected?
The premiums are implemented through the Ontario Income Tax Act and administered by the Canada Revenue Agency (CRA) under the existing tax collection agreement between Ontario and the federal government. The health premium is deducted from pay and pensions of those with employment income or pension income of more than $20,000 a year, as part of federal and Ontario income tax. To ensure that employers do not incur added costs to change their payroll systems, the health premium is included on pay stubs as a component of the income tax withheld.
