ARQ HSF Audit — Montreal CPA Firm Near You: Health Services Fund Right-Sized

The ARQ HSF Audit (Health Services Fund verification) is one of the most overlooked yet financially significant payroll audits in Québec. The Health Services Fund (HSF) is a mandatory employer contribution designed to support Québec’s healthcare system, calculated as a percentage of total wages. While most employers assume their payroll software handles this automatically, small misclassifications or rate errors can cost thousands in reassessments. Mackisen CPA Montreal specializes in ensuring your HSF remittances are accurate, right-sized, and fully compliant with Revenu Québec regulations.

Legal Foundation

Law: Taxation Act (TA) ss. 968–969 — employer obligation to contribute to the HSF based on total payroll and business sector; Tax Administration Act (LAF) arts. 40–44 — audit and enforcement powers.
Jurisprudence: Hôpital Sainte-Marie v. ARQ (2009 QCCS) — confirmed that employers are responsible for correct contribution calculations and that payroll systems do not exempt them from liability.

Why the HSF Audit Matters

HSF contributions directly fund Québec’s health system, and Revenu Québec takes their verification seriously. Incorrect classification of employee types, part-time exemptions, or company activity codes can lead to underpayments or overpayments. Since contribution rates vary by total payroll size and industry, even a small error in annual wage reporting can distort your compliance.

Learning insight: Payroll software calculates; a CPA interprets. The difference between the two can save your business thousands of dollars and an unnecessary audit.

What Mackisen CPA’s HSF Audit Review Includes

• Verification of total payroll and employer classification by sector (e.g., manufacturing, services, finance).

• Cross-checking of HSF rates applied vs. official Revenu Québec thresholds.

• Review of RL-1 slips and CO-17 Schedule B to ensure consistent wage reporting.

• Recalculation of HSF contributions for prior years to identify under- or over-remittances.

• Preparation of amended filings and voluntary disclosures when errors are detected.

Learning insight: The right HSF rate can change every fiscal year. Mackisen CPA ensures you’re never paying more — or less — than legally required.

Common Triggers for an ARQ HSF Audit

• Payroll increases that cross a new HSF rate threshold.

• Inconsistent RL-1 and FPZ-500-V wage totals.

• Use of incorrect NAICS or activity code (e.g., classifying retail as professional services).

• Frequent payroll adjustments or amended remittances.

• Late or missing annual summary filings.

Mackisen CPA Montreal uses proactive reconciliation to prevent these triggers from escalating into costly audits.

How Mackisen CPA Manages HSF Audits

1. Reviews six years of HSF filing history for consistency and proper classification.

2. Recalculates HSF using Revenu Québec’s official rate tables and sector thresholds.

3. Identifies potential refunds or overpayments for amendment opportunities.

4. Coordinates with Revenu Québec to file corrections and negotiate relief from interest or penalties.

5. Implements automated payroll-control systems to ensure accurate future remittances.

Learning insight: Every payroll line tells a compliance story — and Mackisen CPA ensures it ends with accuracy, not adjustment.

The Financial Impact of an HSF Error

A one-percent error in HSF calculation can cost a company with a $2 million payroll over $20 000 in reassessments plus interest. Conversely, thousands are lost every year by companies that overpay HSF due to misapplied rates. Mackisen CPA Montreal ensures your rate is right — and your compliance is documented.

Learning insight: Overpaying the HSF doesn’t earn goodwill — it just reduces your profit. Underpaying creates penalties. Mackisen CPA keeps you in the balance of legal compliance and financial optimization.

SEO Optimization and Learning Value

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Secondary Keywords: Québec payroll compliance, HSF rate by payroll size, Mackisen payroll audit, HSF penalty relief, CO-17 Schedule B reconciliation.

Learning insight: Payroll compliance is a precision discipline. Every deduction, rate, and remittance must align perfectly with Québec law — and Mackisen CPA ensures it does.

Real Client Success

• A Montréal manufacturer recovered $18 500 in HSF overpayments after Mackisen CPA recalculated payroll by proper activity code.

• A healthcare provider avoided a $27 000 reassessment when our audit revealed a data-entry error in annual payroll reporting.

• A growing startup secured full interest relief after proving diligence through our CPA-prepared reconciliation reports.

Why Mackisen CPA Montreal

Mackisen CPA Montreal is Québec’s go-to firm for payroll, HSF, and source-deduction compliance. Our bilingual CPA team combines deep knowledge of Revenu Québec regulations with practical payroll expertise, ensuring your filings withstand scrutiny while optimizing cash flow. With over 35 years of combined experience, we serve businesses of every size with one principle — financial precision equals legal protection.

Learning insight: A payroll audit handled by a CPA isn’t just a defense — it’s a strategy for confidence, compliance, and continuity.