Remuneration Paid as a Payer
You pay remuneration as a payer if you pay a beneficiary:
- a retirement benefit (for example, from a registered pension plan [RPP])
- an annuity (for example, from a registered retirement savings plan [RRSP], a registered retirement income fund [RRIF] or a deferred profit-sharing plan [DPSP])
- an amount under a profit-sharing plan, an employee benefit plan or an employee trust
- an amount under a retirement compensation arrangement
- a single payment from an RRSP or an RPP
- wage loss replacement benefits under a wage loss replacement plan to which an employer contributed
If you pay remuneration to a beneficiary who is also your employee, you are considered to have acted as a payer.
Are you required to withhold income tax?
As a payer, you are required to make source deductions of income tax on all remuneration subject to source deductions that you pay a beneficiary who is resident in Québec at the time of the payment.
To find out if the remuneration you pay is subject to source deductions of income tax, go to Types of Remuneration – Table of Remuneration Subject to Source Deductions and Employer Contributions.
Person not resident in Canada
You are generally not required to withhold income tax if the above conditions are not met, but may have to if you make a payment to a person not resident in Canada that performs services for you in Québec.