Remuneration Subject to Source Deductions and Employer Contributions

Refer to the pages mentioned in this table, as they contain important information.

Note

This table shows whether or not a given type of remuneration is subject to source deductions of income tax, contributions and premiums. For information on any special cases, exclusions, exemptions, or other considerations that may apply, refer to the pages in the Calculating Source Deductions and Your Employer Contributions section that cover source deductions of income tax or the contribution or premium in question.

Type of remuneration Income Tax QPP QPIP Health Services Fund Labour standards WSDRF
Amount paid as financial support by the Ministère du Travail, de l'Emploi et de la Solidarité sociale
Benefits paid by a trustee under a supplementary unemployment benefit plan
Benefits paid under a program administered pursuant to an agreement entered into under section 5 of the Department of Fisheries and Oceans Act (federal statute)
Benefits paid under an income support program to the parents of a crime victim
Benefits paid under the Labour Adjustment Benefits Act (federal statute)
Commissions paid to a self-employed person
Commissions paid to an employee
Death benefit paid by an employer1
Death benefits received from Retraite Québec
Directors' fees
Directors' fees paid to a director who also receives a salary
Directors' fees paid to a director who does not receive a salary
DPSP
Annuities from a DPSP
Single payments
Earnings loss benefits, supplementary retirement benefits and permanent impairment allowances paid under the Canadian Forces Members and Veterans Re-establishment and Compensation Act (federal statute)
Employee benefit plan
Amounts paid by a custodian of an employee benefit plan
Amounts paid by an employer to a custodian of an employee benefit plan
Refunds of contributions made by an employee to an employee benefit plan
Employee trust
Amounts paid by a trustee of an employee trust
Amounts paid by an employer to a trustee of an employee trust
Employment Insurance benefits
Fees paid to a self-employed person
Financial assistance paid under a program established by a government or government agency in Canada or by another organization 2
Gratuities and retroactive pay
Income assistance payments made to older workers under the Department of Employment and Social Development Act (federal statute)
Income-averaging annuity
Amounts paid as consideration for the surrender, cancellation or redemption of an income-averaging annuity contract3
Income-averaging annuity for artists 4
Income supplements
Indemnities further to an industrial accident – CNESST
Indemnity paid further to a precautionary cessation of work (amount paid to an employee under the Act respecting occupational health and safety for the first five days following the date on which the employee ceased to work)
Indemnities paid to terminate a contract of employment
Indemnity in lieu of notice
Other indemnities for damages plus interest upon termination of a contract of employment
Location incentives paid to a physician
Overtime pay
Paid leaves of absence (other than a salary deferral arrangement)
Deferred salary leave (self-funded) Portion of the salary or wages that is not paid in the year but is deferred to another year
Payment of the deferred portion of salary or wages when the employee takes a leave of absence
Salary advance leave (salary paid in advance)
Parental insurance benefits
Parental insurance benefits 5
Top-up payments made by an employer to increase parental insurance benefits
Patronage dividends
Prizes awarded for an achievement
Profit-sharing plan
Amounts paid by a trustee of a profit-sharing plan that can be reasonably attributed to an amount paid to the trustee after May 12, 1994
Amounts paid by a trustee of a profit-sharing plan that can be reasonably attributed to an amount paid to the trustee before May 13, 1994
Amounts paid by an employer to a trustee of a profit-sharing plan
Single payment in full satisfaction of all an employee's rights in the plan, if the payment is not taxable for the employee
Single payment in full satisfaction of all an employee's rights in the plan, if the payment is taxable for the employee
Registered disability savings plan (RDSP)
Taxable portion of disability assistance payments that exceeds $14,280 for the year
Registered education savings plans (RESP)
Accumulated income payments
Educational assistance payments
Refunds of RESP contributions
Registered pension plan (RPP) or other pension plans
Pension benefits: periodic payments
Single payments
Research grants
Retirement compensation arrangement
Amounts paid under a retirement compensation arrangement or resulting from the making of such an arrangement
Contributions paid to a retirement compensation arrangement
Retiring allowance, other than indemnities paid to terminate a contract of employment
Registered retirement income fund (RRIF)
Portion of the payment from a RRIF that exceeds the minimum amount
Portion of the payment from a RRIF that represents the minimum amount
Registered retirement savings plan (RRSP)
Periodic payments
Single payments
Salaries or wages6
Salary deferral arrangements
All the salary or wages earned in the year (including the portion that is not paid in the year but is deferred to another year)
Payment of the deferred portion of salary or wages
Scholarships, bursaries or fellowships paid to a person who is not an employee7
Taxable benefits in cash 8
Taxable benefits in kind 9
Tips (including allocated tips) 10
Vacation pay
Voluntary retirement savings plan (VRSP) or pooled registered pension plan (PRPP)
Periodic payments
Single payments
Wage loss replacement benefits
Wage loss replacement benefits paid by an employer
Wage loss replacement benefits paid by an insurer or trustee 11
Notes
  1. These are not the amounts paid after the death of an employee, nor are they the death benefit paid by Retraite Québec. See Deceased Employee.

    Click Death Benefit for the definition of the term.

  2. No income tax is withheld on the portion of an amount paid as financial support by the Ministère du Travail, de l'Emploi et de la Solidarité sociale that pertains to childcare expenses or tuition fees.

  3. Click Income-Averaging Annuity for Artists.

  4. Click Single Payments.

  5. This amount is not subject to QPIP premiums if both the following conditions are met:

      • The total of the top-up payments and the parental insurance benefits does not exceed the employee's normal weekly remuneration.
      • The top-up amount does not reduce severance pay, unused sick leave or vacation leave, or any other credit accumulated by the employee.
  6. See the definition of salaries or wages (This link will open a new window) for the types of remuneration that are considered salaries or wages.

    Note

    For information concerning the QPIP, see Remuneration Subject to Québec Parental Insurance Plan (QPIP) Premiums.

  7. If the scholarship, bursary or fellowship is paid to an employee, it is considered a benefit and may be taxable. See Tuition Fees, Scholarships and Bursaries.

  8. Exceptions apply. See Taxable Benefits.

  9. A taxable benefit in kind (other than a benefit related to board and lodging received by the employee for a pay period in which he or she received cash remuneration) is not subject to QPIP premiums. Exceptions apply. See Taxable Benefits.

  10. Allocated tips are not subject to QPIP premiums.

  11. Wage loss replacement benefits are not subject to QPIP premiums, unless:

    • the employer pays the benefits directly to an employee under a plan funded in part by the employer; and
    • an employee receives the benefits from a third party under a plan funded in part by the employer and in respect of which the employer controls certain terms and conditions and determines eligibility for benefits.
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