Table of Remuneration Subject to Source Deductions and Employer Contributions
The table below shows whether the remuneration you pay is subject to source deductions and employer contributions. It also shows in which box of the RL-1 slip (see courtesy translation RL-1-T) to include the remuneration.
If the remuneration you pay is not shown in the table below, contact us.
For more information on filing the RL-1 slip, see RL-1 Slip – Employment and Other Income.
- Both an indemnity in lieu of notice required under the Act respecting labour standards and an amount paid as damages upon cancellation of an employment contract are subject to the contribution related to labour standards.
A taxable benefit in kind is not subject to source deductions of income tax or QPP contributions if no other amount is paid to the employee for the pay period in which the benefit in kind is granted. A taxable benefit in kind (other than a benefit consisting of board and lodging received by the employee for a pay period in which the employee received cash remuneration) is not subject to QPIP premiums, either.
A taxable benefit related to an amount you pay a third person on behalf of an employee (e.g. tuition fees, professional membership dues) for property or a service the third person provides your employee is subject to QPIP premiums if the employee continues to own the property or service and would otherwise pay the amount if you did not.
You must take into account the value of a taxable benefit in kind in calculating the employer contribution to the health services fund, the contribution related to labour standards and, where applicable, the contribution to the WSDRF. See Taxable Benefits.
Consult Appendix 1 of the Guide for Employers: Source Deductions and Contributions (TP-1015.G-V), to see whether the remuneration you pay further to an industrial accident is subject to source deductions and employer contributions.
- Director's fees are subject to the contributions to the health services fund and the WSDRF.
- Allocated tips are not subject to QPIP premiums.
- Note that death benefits paid by an employer are not the same as death benefits received from Retraite Québec. Amounts owed to an employee that are paid by an employer following the employee's death are not considered death benefits. See Deceased Employee.
- Employment Insurance benefits are benefits paid under the Unemployment Insurance Act (other than a payment relating to a course or program designed to facilitate the re-entry into the labour market of a claimant), or benefits paid under Part I, Part VII.1, Part VIII or Part VIII.I of the Employment Insurance Act.
- This amount is not subject to QPIP premiums if both the following conditions are met:
- The total of the top-up payments and the parental insurance or compassionate care benefits does not exceed the employee's normal weekly remuneration.
- The top-up amount does not reduce severance pay, unused sick leave or vacation leave, or any other credit accumulated by the employee.
- Wage loss replacement benefits are not subject to QPIP premiums, unless:
- the employer pays the benefits directly to an employee under a plan funded in part by the employer; or
- an employee receives the benefits from a third party under a plan funded in part by the employer and in respect of which the employer controls certain terms and conditions and determines, either directly or indirectly, eligibility for benefits.
- Click Single Payments.
- See the definition of salaries or wages for the types of remuneration that are considered salaries or wages. For information concerning the QPIP, see Remuneration Subject to Québec Parental Insurance Plan (QPIP) Premiums.