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What about a plan that would require.employers with a payroll of $500,000 to pay a total of $975 a year. In this example the employer is eligible for $450,000 reduction. That means they are paying the highest rate of 1.95% on an annual.payroll. However with the $450,000 exemption they only have to pay it on $50,000. An employer with a payroll of 5 million would pay $97,500 a.year. The plan.covers 100% of the employees and their families. There.are no deductibles or co payments and everyone is covered by the same plan eliminating the resentment can exist where people think others are getting preferential treatment. The plan covers physicians, hospitals and a number of home based services. This is an overview of the way health care is funded in Ontario, Canada. There are.various.categories of employers that don’t have to pay any tax. Since health insurance is not tied to a job everyone has the same coverage regardless of what their employer pays. The legislation is.just 40 page is long. Information and links to relevant.documents is available on the government’s web site at