Published | Category: Source deductions and contributions

Principal Changes Related to RL-1 Slips for 2017

Allowance for the use of a motor vehicle

For 2017, the per-kilometre rate for the use of a motor vehicle that you pay an employee and that we consider reasonable is $0.54 for the first 5,000 kilometres and $0.48 for each additional kilometre.

Operating-costs benefit related to an automobile made available to an employee

For 2017, the per-kilometre rate used to calculate the operating-costs benefit related to an automobile made available to an employee is $0.25. For employees engaged principally in selling or leasing automobiles, the per-kilometre rate is $0.22.

Reduction of the health services fund contribution rate for small and medium-sized businesses

The health services fund contribution rate for employers whose total payroll for a year is less than $5 million is being reduced over a period of five years starting in 2017.

For 2017, if you are an employer in the primary or manufacturing sector, and more than 50% of your total payroll is attributable to activities in either of these sectors (see the note below), your contribution rate is as follows:

  • If your total payroll is $1 million or less, the contribution rate is 1.55%.
  • If your total payroll is more than $1 million but less than $5 million, use the following formula to calculate the rate (W):
    W (%) = 0.8725 + 0.6775 × S
    where S = your total payroll 1,000,000 $
  • If your total payroll is $5 million or more, the contribution rate is 4.26%.

In all other cases, your contribution rate is as follows:

  • If your total payroll is $1 million or less, the contribution rate is 2.5%.
  • If your total payroll is more than $1 million but less than $5 million, use the following formula to calculate the rate (W):
    W (%) = 2.06 + 0.44 × S
    where S = your total payroll 1,000,000 $
  • If your total payroll is $5 million or more, the contribution rate is 4.26%.
Note

The primary and manufacturing sector activities are classified under codes 11, 21 and 31–33 of the North American Industry Classification System (NAICS). For a description of the codes, go to the Statistics Canada website.

Temporary reduction of the health services fund contribution for the creation of specialized jobs

The reduction rate used in form LE-34.1.12-V, Reduction of the Contribution to the Health Services Fund: Creation of Specialized Jobs, will be adjusted each year from 2017 to 2020 to take into account the reduction of the health services fund contribution rate for small and medium-sized businesses.

Contribution related to labour standards

Effective January 1, 2017, the rate that applies to remuneration subject to the contribution related to labour standards (formerly the “contribution to the financing of the CNT”) is 0.07%.

In addition, the portion of the remuneration that exceeds $72,500 for 2017 (previously $71,500) is not subject to the contribution related to labour standards.

Electronic distribution of RL slips to employees

For 2017 and subsequent years, you can distribute RL slips to your employees electronically without their prior written consent, provided you meet the criteria for distributing T4 slips to employees electronically. For more information, go to the Canada Revenue Agency website.

Electronic filing of RL slips with Revenu Québec

Effective January 1, 2017, you may have to pay a penalty if you file more than 50 RL-1 slips for a given calendar year and you fail to file those slips online or by the deadline. For more information about filing RL slips, see RL Slips and Summaries

Additional tax relief for Canadian Forces personnel and police officers

For 2017 and subsequent years, Canadian Forces personnel and police officers who earned employment income while deployed on a mission abroad can claim a deduction on that income, regardless of the risk score associated with the mission. The deduction is limited to the maximum remuneration a Lieutenant-Colonel of the Canadian Forces can receive during the mission. For more information, see RL-1 Slip – Canadian Forces Personnel and Police Officers.

Last Updated: