Remuneration Subject to Source Deductions of Québec Income Tax
To find out if an amount you pay is subject to source deductions of income tax, see Table of Remuneration Subject to Source Deductions and Employer Contributions.
The method you use to calculate source deductions of Québec income tax on remuneration subject to income tax depends on the specific type of remuneration paid.
Calculate source deductions of income tax using the Source Deduction Table for Québec Income Tax (TP-1015.TI-V), the Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V), or WebRAS or WinRAS, if you pay any of the following types of remuneration:
- a salary or wages (unless you have to make source deductions at a fixed rate or using the method applicable to gratuities, or the salary or wages are remuneration not subject to source deductions of Québec income tax);
- wage loss replacement benefits paid under a wage loss replacement plan to which the employer contributed;
- pension benefits from a registered pension plan (RPP) or another pension plan paid periodically to a person who is resident in Québec;
- the portion of a periodic payment from a registered retirement income fund (RRIF) that exceeds the minimum amount;
- amounts paid under a retirement compensation arrangement or resulting from the making of such an arrangement;
- employment insurance benefits;
- parental insurance benefits;
- financial assistance paid under a program established by a government or government agency in Canada or by another organization;
- benefits paid under a supplementary unemployment benefit plan;
- income assistance payments made to older workers under the Department of Employment and Social Development Act (federal statute);
- benefits paid under the Labour Adjustment Benefits Act (federal statute);
- 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);
- annuities from a deferred profit-sharing plan (DPSP) (including a DPSP whose registration has been revoked), minus any amount determined under sections 883, 884 and 886 of the Taxation Act;
- amounts paid by a custodian of an employee benefit plan, other than refunds of contributions made to the plan;
- periodic payment from a voluntary retirement savings plan (VRSP) or a pooled registered pension plan (PRPP);
- benefit paid under the support program for the parents of a crime victim.
Use a fixed rate to calculate source deductions of income tax from the following types of remuneration:
- gratuities and retroactive pay, where the employee's estimated annual remuneration, including the gratuity or retroactive pay, is not more than $15,532;
- certain single payments (for example, a retiring allowance);
- single payments from a registered retirement savings plan (RRSP), a voluntary retirement savings plan (VRSP), a pooled registered pension plan (PRPP) or the portion of a single payment from a registered retirement income fund (RRIF) that exceeds the minimum amount (certain exemptions apply);
- income supplements paid under a government work-incentive project, other than the Return to Work Supplement sponsored by Emploi-Québec;
- payments made, other than in the course of regular and continuous employment, to a person (including a corporation) not resident in Canada for services the person performed for you in Québec;
- amounts paid to a self-employed fisher for his or her fishery products, provided the fisher has completed form TP-1015.N-V, Election by Fishers to Have Income Tax Deducted at Source;
- the portion of disability assistance payments from a registered disability savings plan (RDSP) that exceeds $18,981 for the year;
- directors' fees paid to a director who does not receive a salary or wages (special instructions apply to this type of remuneration); and
- amounts paid under an income-averaging annuity for artists (a special tax applies to this type of remuneration).
Use the method applicable to gratuities to calculate the source deductions of income tax from the following types of remuneration:
- commissions paid to an employee who does not have to incur expenses or who did not complete the Statement of Commissions and Expenses for Source Deduction Purposes (form TP-1015.R.13.1-V), if the commissions are not paid to the employee on a regular basis;
- gratuities and retroactive pay, where the employee's estimated annual remuneration, including the gratuity or retroactive pay, is more than $15,532;
- overtime paid in a pay period other than the period in which it was earned (that is, accumulated overtime);
- vacation pay paid to an employee who is not taking holidays; and
- taxable benefits resulting from the exercise of a security option that is a share of a corporation (other than a Canadian-controlled private corporation [CCPC]) or mutual fund units.
If you use the formulas in guide TP-1015.F-V to calculate source deductions of income tax on regular payments, you may notice that the amount obtained differs from the amount shown in the Source Deduction Table for Québec Income Tax (TP-1015.TI-V). The difference is attributable to the fact that the elements taken into account in the calculation are not the same.