I have some clients who are international students working part-time. Since they are not full-time employees, Service Ontario does not provide them with a health card or health benefits. However, when filing their taxes, premium amount is automatically deducting around $300 for the Ontario Health Premium based on their income.
Is there a way to adjust their tax return so they are not required to pay this amount, given that they are not eligible for OHIP benefits? Any insights or experiences would be appreciated!
Although your clients are not eligible for OHIP coverage, unfortunately, they still need to pay the Ontario Health Premium if their level income exceeds the income threshold.
Other than its name, the Ontario Health Premium has little to do with health coverage. It’s just another tax on income levied by the Ontario government… just like the two Ontario surtaxes that were once named “Fair Share Health Care Levies”.
Most of the Ontario healthcare levies are paid by employers by way of a 1.95% tax grab on payroll called the Employer Health Tax. Their is an annual exemption for smaller employers.
Corporations that pay the Employer Health Tax do not qualify for OHIP benefits either.
