Quebec Government Bodies Round Table
Laurette Saade, RQ
David Girard Boucher, RQ
Pierre Morin, CSST
Robert Dicaire, R2D1 Inc.
Marie Lyne Dion, STM
CSST
Sub-Contractors and Volunteers
• Employers responsible for ensuring subcontractors and volunteers are covered by the
CSST.
• If not, employer to pay remittances by March 15
without penalty or interest.
Safe Maternity Experience program
• For the five working days following her temporary
withdrawal from work, the worker is paid her regular
salary by her employer; this amount is not refunded by
the CSST.
• For the 14 calendar days following this initial five-day
period, the employer pays the worker 90% of her net
salary. This amount is refunded to the employer
by the CSST.
…Province of taxation
•If a non-Quebec resident works at the employer’s establishment in Quebec:
•QPP instead of CPP
•EI at the Quebec rate
•Deduct QPIP
•Federal income tax (Quebec table)
•Quebec income tax
•All employer contributions:
–CSST – Commission de la santé et de la sécurité du travail – QWCB
–QHSF – Quebec Health Services Fund
–CNT – Commission des normes du travail – QLS
–WSDRF – Workforce Skills Development and Recognition Fund
•T4 and R1
•Inform your insurance carrier that the employee lives in Ontario and that sales tax should
be at 8%
•Remove any Quebec only taxable benefits
QPP
• No maximum age limit:
• You are over 18, you work, you pay!
• Successive employers:
• No work interruption, consider previous contributions –
CRA is now following the same rules… well almost… unless
you change your status!
2013 QPP Contribution Rates
Yearly maximum pensionable earnings
51,100.00 $
Year’s basic exemption
3,500.00 $
Contributory earnings
47,600.00 $
Contributory rate
Yearly maximum contribution
5.100 %
2,427.60 $
Parental insurance
• What is the Quebec Parental Insurance Plan
(QPIP)?
– Government plan provides an income replacement
for eligible workers during a maternity, paternity,
parental and adoption leave which are different from
those available under EI in a number of ways.
Parental insurance
• Eligibility Criteria:
• Employee or self-employed person with a minimum
annual income of $ 2000,
• Being a Quebec resident or, for a self-employed, being a
Quebec resident on December 31 of the year prior to
receiving the benefits.
• Has an income reduction of at least 40%.
• Pay premiums under the QPIP
2013 QPIP Rates
(within Quebec only)
Yearly maximum insurable earnings
67,500.00 $
QPIP premium rate
0.559 %
Employee maximum yearly premium
377.33 $
Employer premium rate
0.782 %
Employer maximum yearly premium (No reduced
rate available)
527.85 $
2013 EI Premium Rate
(within Quebec)
Yearly maximum insurable earnings
47,400.00 $
Employment insurance premium rate
1.52 %
Employee maximum yearly premium
720.48 $
Employer maximum yearly premium
(Unreduced – 1.4 times employee)
1 008.67 $
HSF – Contribution rate calculation
•Employer’s worldwide annual payroll amount
determines the HSF contribution rate:
•Payroll less than 1 million: 2.70%
•Payroll more than 5 million: 4.26%
•Payroll between 1 and 5 million:
•
2.31 + (0.39 x S)
•
Where S = Payroll $  1 million
HSF
• The total payroll (worldwide) is only used to
determine the rate of contribution based on the
sum of all payroll value of all associated
employers at the end of a calendar year.
HSF – Example 1
• From Jan. to Oct 31 an employer has a total payroll of $
500.000 – the rate of contribution is 2.7%
• Nov 10 – merger with a company in China and USA
• At year-end the WW payroll is more than $ 5 M
• The contribution for the ENTIRE year will now be 4.26 %
HSF – Example 2… oups forgot my division in BC
HSF Contribution
•
•
•
Contribution for 2012
Contribution to be reported on the RLZ-1.S
($ 800 000 x 2,7 %)
($ 800 000 x 4,26 %)
$ 21 600
$ 34 080
Employer paid the HSF contribution without taking the associated employer payroll
amount into consideration.
Balance to pay from the RLZ-1.S = $ 12 480 (34 080 - 21 600).
Interest to be paid:
– On 12 480 $ (34 080 $ - 21 600 $) from Feb 28
Taxability
• Insurance paid for Medical, Dental and Visual coverage
• Meals and transportation expenses when working
overtime – receipts else TB – no max (17$)
• Gifts and rewards (gift certificates is non-monetary)
• Professional membership – if required for work… TB
• Moving expenses ….see note: http://www.craarc.gc.ca/F/pub/tp/it178r3-consolid/it178r3-consolidf.pdf
• Payment in lieu of notice
Non-monetary gifts and rewards
•
•
•
•
Federal
Separate $ 500 exemption for
Long Service Award
Unlimited number of gifts and
awards
Any amount above $ 500 is
taxable
For any gift or award given in
cash, the amount is considered
pensionable, insurable, taxable to
the employee, subject to all
statutory deductions.
Quebec
•non-monetary gifts given to an employee for a
special occasion (such as Christmas, a birthday,
wedding, etc), up to $500 (incl taxes) per year; and
•non-monetary rewards given to an employee in
recognition of certain accomplishments (such as
reaching a certain number of years of service,
meeting safety requirements, or achieving
objectives), up to $500 (including taxes) per year.
•Gift certificates, gift coupons and smart cards
that must be used to purchase goods or services
from a designated business or list of businesses are
not considered to be easily convertible into cash
•Unlimited number of gifts and awards
•Any amount above $ 500 is taxable
Reminder: Insurance Coverage
Type of coverage
Federal
Quebec
Life
X
X
Dependant Life
X
X
AD&D
X
X
Medical
X
Dental
X
Visual
X
Health Spending Account
*
X
Group Insurance – Serious Illness
• Lump sum amount paid to beneficiary that can
be used to pay for any expenses during the
hardship period
• Any amount paid by the employer for this
coverage is a taxable benefit and must be
reported in boxes A and L of the RL-1 slip
• The employee can not use this benefits as a
credit for medical expenses
Group Insurance – Live / AD&D
• Group insurance paid in full or in part by the
employer for:
– Life of an employee and / or spouse / dependants
– Death or dismemberment
Taxable benefits to be reported in boxes A and L of the
RL-1 slip
Group Insurance – Loss of Income
Loss of employment income premiums
Contributions
Benefits received
Premiums paid by the employee and the employer
Non Taxable*
Taxable
Premiums only paid by the employer
Non Taxable*
Taxable
Premiums only paid by the employee
Non Taxable
Non Taxable
* Premium paid by the employer would be considered a taxable benefit if a lump-sum
payment made to the employee instead of periodic payments (considered income under
section 43 of the TA).
Health Contribution
• Since Jan 2013, health contribution deductions are
included as part of the Quebec income tax
– employee may claim an exemption in box 22 of the
TP-1015.3
• Employer must remit at the same time as other DAS
• Grace period to apply the deduction – March 2013
Professional Membership
• Federal
– If you pay professional membership dues on behalf of your employee and
the employer is the primary beneficiary of the payment, there is no benefit
to the employee
• membership is a condition of employment
• The employer is the primary beneficiary
• Quebec
– If you pay or reimburse the professional membership dues of an employee,
he or she receives a taxable benefit
– It may be considered that such a payment or reimbursement is not a
taxable benefit if the facts show that the payment or reimbursement is
entirely or almost entirely for the employer’s benefit (not work related)
Overtime Meals and allowances
Federal
Non Taxable if :
Quebec
Non Taxable if :
• The employee works two or more
hours of overtime right before or right
after his or her scheduled hours of
work.
• The overtime is infrequent and
occasional in nature (usually, less than
three times a week)
• The allowance, or the cost of the
meal, is reasonable ( a value of up to
$17)
• The meal expenses incurred by the
employee are reimbursed (in whole
or in part) upon presentation of
receipts.
• The reimbursed amount / the value
of the meal provided by the
employer is reasonable.
• At least 3 hours of overtime
• Infrequent
Indemnity for damages
Taxable or not?
An amount received in respect of a loss of an office or employment as damages or
pursuant to an order or judgment of a competent tribunal constitute:
• Retiring allowance if the employee does not return to work
• Employment income when an employee reintegrates his employment
An amount that is received as an indemnity for physical, mental or moral damages
due to bodily injury or death, and that is awarded by a court of competent
jurisdiction or from an out-of-court settlement is generally not taxable if it covers:
• Reimbursement of medical or hospital expenses
• Compensation for pain and suffering, the accrued or future loss of income, the
loss of enjoyment of life and longevity, the impairment or loss of earning
capacity, or the loss of the family provider
Clothing
Employer provided clothing to employees is
not taxable to the employees when it is
required to wear as part of their functions if:
• Distinctive clothing i.e.: inappropriate
outside of the work environment
• The value is reasonable
Lieu of notice
• Federal
– Lieu of notice is considers by CRA as employment
income
– Subject to CPP and EI
– Bonus tax calculation method can be used
• Quebec
– Amount paid is considered as Retiring Allowance
(Lump Sum rate)
A Retiring Allowance may include…
•
•
•
•
Unused sick bank
Year of Service recognition
Severance payment
Amount paid to end an employment including
damage and interest (unjustified termination)
• Damage and interest due to a court decision
• Lieu of notice (Quebec only)
Taxation and reporting Summary
Payment
Federal
Québec
CPP
EI
Tax
Reporting
QPP
QPIP
Tax
Reporting
Worked
Notice
Yes
Yes
Yes
Regular
T4 Box 14
Yes
Yes
Yes
Regular
Relevé 1
Box A
Lieu of
Notice
Yes
Yes
Yes
Bonus
T4 Box 14
Non
Yes
Yes
Lump Sum
Relevé 1
Box O
Code RJ
Severance Pay
ON & Federal
Non
Non
Yes
Lump Sum
T4 Box 66
and/or 67
Non
Non
Yes
Lump Sum
Relevé 1
Box O
Code RJ
Additional
payment
Retiring
Allowances
Non
Non
Yes
Lump Sum
T4 Box 66
and/or 67
Non
Non
Yes
Lump Sum
Relevé 1
Box O
Code RJ
Employee /
employer
relationship
Salary
continuance
Yes
Yes
Yes
Regular
T4 Box 14
Yes
Yes
Yes
Regular
Relevé 1
Box A
Legislated
payment
Progressive Retirement
Program that allows and employee to continue his
contributions to QPP on his full salary while
progressively reducing his worked hours
Example:
Employee full salary
$ 46,000
Work reduction 20%
$ 9,200
Reporting:
Box A
Box U
(presumed salary)
Box G
$ 36, 800
$ 9, 200
$ 46, 000
Progressive Retirement
Conditions
•
•
•
•
•
•
•
•
•
Employee is between 55 and 70
Must have contributed to QPP the previous year
Can not receive retirement or invalid benefits from QPP
Income must be greater than $3500
Must be the same employer as the previous year if not the new employer must
consent to the conditions
The employee/employer relationship must never be broken between the time
the employee was full time and his progressive retirement
Both employee and employer contributions must be done
The employee and the employer must agree to the conditions
The agreement must be approved by QPP
Contributions to Normes du travail
• Employers who have employees working in Quebec
must contribute to the financing of the Quebec Labour
Standards – this contribution covers the cost of
administering the law.
• The contribution is calculated at a universal rate of
0.08% ($ 0.80 per $1 000). The contribution stops when
an employee exceeds the salary of $ 67,500 (for 2013)
• 4% paid every pay period
Pay slip
• Name of employer
• Employee’s first and last
name
• Job title
• Pay Period and pay dates
• Paid hours and rate of
pay
• Overtime hours and rate
of pay
• Premium, allowances,
indemnities and
commissions
• Wage rate or Salary
• Gross earnings
• Deductions (name and
amount)
• Tips
• Net Pay
WSDRF
• For employers with annual payroll over
$ 1 million
• Employers must train their employees for a
minimum of 1 % of their payroll, otherwise they
must contribute to the fund when submitting
their Summary (RLZ-1.S)
• Employer must complete the form «Déclaration
des activités de formation de la Commission des
partenaire du marché du travail »
Relevé 17
Remuneration for employment outside Canada
The amount entered in box B of the RL-17 slip must include the aggregate of salaries
or wages, and allowances paid during the year for employment outside of Canada.
This amount must also be entered in box A of the RL-1 slip.
Deductions for employment income earned outside of Canada based on Box A of the RL 17:
Contract or agreement signed before Jan 1, 2013
2013
2014
2015
2016
100 %
100 %
100 %
0%
Contract or agreement signed after Decembre 31, 2012
2013
2014
2015
2016
75 %
50 %
25 %
0%