Calculating Source Deductions and Employer Contributions
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).
Every amount you deduct, withhold or collect as an employer or a payer pursuant to a fiscal law is deemed to be held in trust for the government until you remit the amount to the government in the prescribed manner and within the prescribed time period. Such amounts constitute a separate fund that is not part of your property.
If you have an establishment in Québec and have at least one employee, you must also register with the Commission des normes, de l'équité, de la santé et de la sécurité du travail (CNESST) and pay the occupational health and safety insurance premium by making periodic payments to us. For more information on calculating this premium, see Periodic Payments of the Occupational Health and Safety Insurance Premium.
If you deduct support payments from the salary or wages you pay to an employee, consult Source Deductions of Support Payments and Arrears.
When you calculate source deductions and contributions, you have to consider:
- the employee's situation;
- your situation as an employer or a payer;
- the type of employment held by the employee; and
- the type of remuneration paid.
For more information, see Special Cases – Source Deductions and Employer Contributions in Certain Situations.