RRSP Contributions Made by the Employer

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Contributions you make to a registered retirement savings plan (RRSP) of which your employee or his or her spouse is the annuitant, and the related administrative costs you pay, constitute a taxable benefit for the employee, provided the amounts were not withheld from the employee's remuneration. You have to include such amounts in boxes A and L and in box G or box I of the employee's RL-1 slip (see courtesy translation RL-1-T). See Benefit Provided to an Employee to find out how a benefit in kind should be treated.

Note

If you make a contribution to a group RRSP and the employee cannot withdraw any amounts before his or her retirement or termination of employment (the only exception being amounts the employee can withdraw under the Home Buyers' Plan [HBP] or the Lifelong Learning Plan [LLP]), do not include the value of the benefit in box I of the employee's RL-1 slip.

Source deductions and contributions

A taxable cash benefit related to RRSP contributions you make on behalf of your employee or the employee's spouse is generally subject to source deductions and employer contributions. However, the benefit is not subject to income tax if you remit the contributions directly to the RRSP issuer. Moreover, the benefit is not subject to Québec parental insurance plan (QPIP) premiums if you make contributions to a group RRSP and the employee cannot withdraw any amounts before his or her retirement or termination of employment (the only exception being amounts the employee can withdraw under the HBP or the LLP).

The taxable benefit related to administrative costs you pay in connection with RRSP contributions you make on behalf of an employee is not subject to income tax or Québec Pension Plan (QPP) contributions if no amounts are paid to the employee for the pay period in which the benefit is provided. This benefit in kind is also not subject to QPIP premiums.

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