Conditions for Making Source Deductions and Paying Employer Contributions

Employers are required to make source deductions and pay employer contributions on any amount subject to such deductions and contributions that they pay to an employee if any of the following conditions are met:

  • The amount is paid to an employee who reports for work at one of your establishments located in Québec.
  • The amount is paid to an employee who is not required to report for work at any of your establishments (located in Québec or elsewhere), but is paid from one of your establishments located in Québec.

Payers are required to make source deductions of income tax on any amount subject to such a deduction that they pay to a beneficiary who is resident in Québec at the time of payment.

Remuneration subject to source deductions

To find out if the amounts that you pay are subject to source deductions and to employer contributions, go to the table of remuneration.

As a rule, if none of the above conditions are met, you do not have to make source deductions or pay employer contributions. However, you may still have to in some cases. For more information, visit Special Cases Concerning Establishments Located Outside Québec and Individuals Who Are Not Resident in Québec.

Summary table
Deductions and contributions Conditions
A B
Québec income tax (amount paid to a beneficiary) The amount paid is subject to source deductions of income tax. The amount is paid to a beneficiary who is resident in Québec at the time of payment.
Québec income tax (amount paid to an employee) The amount paid is subject to source deductions of income tax.

The amount is paid to an employee who reports for work at one of your establishments located in Québec.

Or

The amount is paid to an employee who is not required to report for work at any of your establishments (located in Québec or elsewhere), but is paid from one of your establishments located in Québec.

Québec Pension Plan (QPP) (employee and employer contributions) The amount paid is subject to QPP contributions
Québec parental insurance plan (QPIP) (employee and employer premiums) The amount paid is subject to QPIP premiums.
Health services fund The amount paid is subject to the contribution to the health services fund.
Labour standards The amount paid is subject to the contribution related to labour standards.
Workforce Skills Development and Recognition Fund (WSDRF) The amount paid must be included in the total payroll.

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