RRSP Contributions Made by the Employer (Other Than Contributions Withheld from the Employee's Salary and Wages)

Source deductions and contributions

If you pay an amount to the issuer of a registered retirement savings plan (RRSP) of which your employee or his or her spouse is the annuitant, this amount constitutes a taxable benefit for the employee. 

You are not required to withhold income tax on this amount if you remit it directly to the RRSP's issuer. However, the amount is subject to employee and employer Québec Pension Plan (QPP) contributions, the employer contribution to the health services fund and the contribution related to labour standards. Also, you must include the amount in your total payroll used to determine your health services fund contribution rate, your participation in workforce skills development and, if applicable, your contribution to the Workforce Skills Development and Recognition Fund (WSDRF). 

In addition, the contributions you make to an employee's individual RRSP are subject to employee and employer Québec parental insurance plan (QPIP) premiums. However, the contributions you make to a group RRSP are not subject to employee and employer QPIP premiums if the employee cannot withdraw amounts before his or her retirement or termination of employment or if the employee can withdraw amounts under the Home Buyers' Plan (HBP) or the Lifelong Learning Plan (LLP).  

Note

A benefit from an amount that you have paid to acquire, on an employee's behalf, a share in a labour-sponsored fund is not subject to these contributions.

Information to enter on RL-1 slip

Since the contributions you make to a RRSP of which your employee or his or her spouse is the annuitant, as well as the related administrative costs you pay, constitute a taxable benefit, provided the amounts were not withheld from the employee's remuneration, you must include such amounts in boxes A and L of the employee's RL-1 slip (see courtesy translation RL-1-T).

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