Paid Leaves of Absence

Deferred salary leave (self-funded)

Amounts that you pay (or that a trustee pays) to an employee taking a leave of absence with deferred salary or wages described in section 47.16R1 of the Regulation respecting the Taxation Act (other than amounts paid under a salary deferral arrangement or an employee benefit plan) are subject to the following in the year they are paid:

You must include these amounts in your total payroll used to calculate 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 the year in which they are paid.

These amounts are subject to employee and employer Québec parental insurance plan (QPIP) premiums in the year in which they are earned and not in the year in which they are paid. Therefore, you must calculate the QPIP premiums in the year in which the amounts were earned, as if the total amount of the employee's salary or wages had been paid in the year.

Salary advance leave

Amounts that you pay (or that a trustee pays) to an employee taking a leave of absence with an advance payment of salary or wages are subject, in the year of payment, to:

  • source deductions of income tax
  • employee and employer QPP contributions
  • employee and employer QPIP premiums
  • the employer contribution to the health services fund
  • the contribution related to labour standards

You must include these amounts in your total payroll used to calculate your health services fund contribution rate, your participation in workforce skills development and, if applicable, your contribution to the WSDRF in the year in which they are paid.

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