Amounts Paid Following the Decision of the CNESST

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Top-up amount

If, after the decision of the Commission des normes, de l'équité, de la santé et de la sécurité du travail (CNESST), you pay an employee an amount in addition to the indemnity he or she is paid by the CNESST, the amount (referred to as a top-up amount) is treated as employment income and must therefore be reported on the employee's RL-1 slip (see courtesy translation RL-1-T).

The amount is subject to:

You must also include this amount in your total payroll used to calculate your health services fund contribution rate, your participation in workforce skills development and, if applicable, your contribution to the Workforce Skills Development and Recognition Fund (WSDRF).

Note
The top-up amount is not subject to Québec parental insurance plan (QPIP) premiums.

If the CNESST recognizes the employee's entitlement to an indemnity and you are repaid or reimbursed any amounts paid before the CNESST's decision

If the CNESST recognizes the employee's entitlement to an indemnity, the employee will generally repay or, where applicable, the CNESST will reimburse any amounts you paid the employee in the period before the decision. How the amounts are treated will depend on the circumstances under which you initially paid them.

Advances of indemnities or loans

You are not required to make any adjustments with respect to an advance of indemnities or a loan you made to an employee that the employee repays in full or the CNESST reimburses in full because the amount does not have to be included as part of the employee's income. You are therefore not required to file an RL-1 slip for the repayment or reimbursement.

If the employee does not repay you or repays a portion of the amount, see below for information about advances of indemnities in cases where the CNESST does not recognize the employee's entitlement to an indemnity.

Salary or wages, or wage loss replacement benefits

If you paid an employee a salary or wages (including the payment of sick leave that has been accumulated but not used) or a wage loss replacement benefit, you must file an RL-1 slip. You must also file an RL-1 slip if the employee repays an excess amount you paid.

For a detailed explanation of how to report the amounts referred to above, see Indemnities Further to an Industrial Accident (CNESST).

If the CNESST does not recognize or only partially recognizes the employee's entitlement to an indemnity and you are not repaid or reimbursed in the year

If the CNESST does not recognize or only partially recognizes the employee's entitlement to an indemnity and you are not repaid or reimbursed before the end of the year, the treatment of the amounts you paid the employee in the period before the CNESST's decision will depend on the circumstances under which you initially paid them.

Advances of indemnities or loans

If you made an advance of indemnities or a loan, and the employee has not repaid or has only partly repaid the amount by December 31 of the year in which the CNESST makes its decision, we consider that you have forgiven the debt and that the employee received a taxable benefit equal to the amount not repaid over the course of the year. You are required to report this amount on the employee's RL-1 slip.

If you allow the employee to use sick leave to repay an advance of indemnities or a loan, the remuneration that corresponds to the gross salary or wages the employee would have received for the sick leave at the time you allow the employee to use the sick leave to repay you constitutes employment income. You must report this amount on the employee's RL-1 slip.

Example – Calculation for an employee who uses sick leave to repay an advance of indemnities

Alex owes you $1,200 for an advance of indemnities that corresponds to a pay period of 10 days, for gross remuneration of $120 per day. On his return to work, his gross remuneration increases to $150 per day. At that time, you allow Alex to use his sick leave to repay the amount of the advance.

  • Number of days of sick leave used by Alex to repay the amount of the advance of indemnities: 8 days ($1,200 ÷ $150)
  • Alex's gross remuneration on which you are required to calculate source deductions and employer contributions: $1,200 (8 days x $150 per day)

The amount is subject to:

  • source deductions of income tax;
  • employee and employer Québec Pension Plan (QPP) contributions;
  • employee and employer Québec parental insurance plan (QPIP) premiums;
  • the employer contribution to the health services fund;
  • the contribution related to labour standards.

You must also include this amount in your total payroll used to calculate your health services fund contribution rate, your participation in workforce skills development and, if applicable, your contribution to the Workforce Skills Development and Recognition Fund (WSDRF).

Salary or wages, or wage loss replacement benefits

You are not required to make any adjustments with respect to a salary or wages, or wage loss replacement benefits you paid that the employee does not repay because the amounts must be included as part of the employee's income.

For a detailed explanation of how to report the amounts referred to above, see Indemnities Further to an Industrial Accident (CNESST).

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