Deduction for the Purchase of Shares in a Labour-Sponsored Fund
The Fonds de solidarité FTQ
Subtract from the employee's gross remuneration for the pay period 75% of the amount withheld for the purchase of Fonds de solidarité FTQ shares if:
- the employee authorized you to withhold deduct the amount;
- the shares are class A shares; and
- the employee is the first purchaser of the shares.
The maximum amount you can subtract from the employee's gross remuneration for the year is $3,750 ($5,000 × 75%).
Fondaction
Subtract from the employee's gross remuneration for the pay period 75% of the amount withheld for the purchase of Fondaction shares if:
- the employee authorized you to deduct the amount;
- the shares are class A or class B shares; and
- the employee is the first purchaser of the shares.
The maximum amount you can subtract from the employee's gross remuneration for the year is $3,750, which is the result of the following calculation: $5,000 x 75%.
Fonds de solidarité FTQ and Fondaction
If an employee purchases both Fonds de solidarité FTQ and Fondaction shares for the annual maximum amount of $5,000 that entitles the employee to the tax credit, the maximum amount you can subtract from the employee's gross remuneration for a pay period must take into account the rate applicable for each fund.
If an employee purchases $2,000 in Fonds de solidarité FTQ shares and $3,000 in Fondaction shares in the year, the maximum amount you can subtract from the employee's gross remuneration for the year is $3,750, which is the total of the following amounts:
- $1,500 for Fonds de solidarité FTQ shares ($2,000 × 75%); and
- $2,250 for Fondaction shares, which is $3,000 x 75%.