Question

In: Accounting

Payroll. Canada. You have just been advised that your organization is opening an office in Québec....

Payroll. Canada. You have just been advised that your organization is opening an office in Québec. Describe the employer contributions that are specific to the province of Québec, their rates and thresholds where available. (Do not include the organization’s portion of the statutory deductions.)

Solutions

Expert Solution

The following contributions are specific to province of Quebec:

  • source deductions of Québec income tax, QPP contributions and QPIP premiums;
  • your employer QPP contributions, QPIP premiums and contributions to the health services fund.
  • your contribution related to labour standards; and
  • your contribution to the Workforce Skills Development and Recognition Fund (WSDRF), if applicable.
  • You must make periodic payments of the occupational health and safety insurance premium to Revenu Québec, at the same time as your source deductions and employer contributions. To make the payments, use the "CNESST" (Commission des normes, de l'équité, de la santé et de la sécurité du travail) box on the remittance slips that we send you. The occupational health and safety insurance premiums you pay to Revenu Québec are remitted to the CNESST. We also send the information that you report in the CNESST box of your remittance slips.
  • The contribution to the health services fund that you are required to pay periodically is calculated on the basis of an estimated contribution rate, unless you are a public-sector employer. At the end of the year, you must determine your actual contribution rate. Any balance payable resulting from the difference between your actual contribution rate and your estimated contribution rate must be paid by the last day of February of the following year.
  • Once you have determined the source deductions and employer contributions payable on the amounts you pay to your employees or beneficiaries, you must calculate the amount.

    As the case may be, you must calculate:

  • source deductions of Québec income tax;
  • employee and employer Québec Pension Plan (QPP) contributions;
  • employee and employer Québec parental insurance plan (QPIP) premiums;
  • your employer contribution to the health services fund;
  • your employer contribution related to labour standards; and
  • your employer contribution to the Workforce Skills Development and Recognition Fund (WSDRF).
  • Certain situations and special cases can modify the calculation of source deductions and employer contributions. Before you make source deductions and pay employer contributions, you must take into account:

  • the situation of the employee (such as an employee on phased retirement);
  • your situation as an employer or a payer (such as an employer succeeding another employer);
  • the type of employment held by the employee; and
  • the type of remuneration paid.

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