RL-1 Slip – Employees Participating in a Leave of Absence Plan
Deferred salary leave plan (self-funded)
Section 47.16R1 of the Regulation respecting the Taxation Act provides information about deferred salary leave plans. Under such a plan, any amounts accumulated by an employee for the leave are paid to the employee during their leave. A deferred salary leave plan is not a salary deferral arrangement or an employee benefit plan.
If your employee participates in a deferred salary leave plan, see the instructions below for details about the information to be entered on the employee's RL-1 slip (see courtesy translation RL-1-T).
These instructions also apply if you have to file an RL-1 slip for a professional athlete who has made certain arrangements to defer their salary or wages.
| Box | Information to be entered on the RL-1 slip |
|---|---|
|
Box A |
Enter the gross employment income paid during the year, including the amount paid to the employee during the leave, if it was taken in the year. |
|
Box I |
Enter the total amount entered in box A plus the portion of the salary or wages earned in the year that will be paid during the leave, minus the amount paid during the leave, if it was taken in the year. |
|
Other boxes and additional information |
Where applicable, enter in the other boxes of the RL-1 slip the amounts calculated according to the instructions given under How to Complete the RL-1 Slip (Box by Box Instructions). Also enter any additional information. |
Example - Calculation of the amounts that must be entered in boxes A and I of an employee's RL-1 slip if the employee had a deferred salary leave plan
An employee who earns $50,000 participates in a deferred salary leave plan from 2024 to 2028. You pay the employee 80% of their salary, that is, $40,000, during these five years, and they take the leave of absence in 2028.
For each year from 2024 to 2027, you must:
- enter $40,000 in box A, which is the salary the employee is paid;
- enter $50,000 in box I, which is the total amount entered in box A ($40,000) plus the portion of the salary earned in the year that the employee will be paid during their leave ($50,000 – $40,000 = $10,000).
For 2028, you must enter $40,000, that is, the amount paid to the employee during their leave, in box A. Box I must be blank, since the result of the following calculation is nil: the total amount entered in box A ($40,000) minus the amount paid during the leave ($40,000).
| Box | 2024 | 2025 | 2026 | 2027 | 2028 (leave) |
|---|---|---|---|---|---|
| Box A | $40,000 | $40,000 | $40,000 | $40,000 | $40,000 |
| Box I | $50,000 | $50,000 | $50,000 | $50,000 | N/ANot applicable |
Salary advance leave plan
Under a salary advance leave plan, the amounts are advanced to the employee during the leave and repaid by the employee after the leave. A salary advance leave is not a salary deferral arrangement or an employee benefit plan.
If your employee participates in a salary advance leave plan, see the instructions below for the information to be entered on the employee's RL-1 slip (see courtesy translation RL-1-T).
| Box | Information to be entered on the RL-1 slip |
|---|---|
|
Box A |
Enter the salary or wages paid to the employee, including the amount paid during the leave, if it was taken in the year. |
|
Box I |
Enter the salary or wages paid to the employee, including the amount paid during the leave, if it was taken in the year. |
|
Other boxes and additional information |
Where applicable, enter in the other boxes of the RL-1 slip the amounts calculated according to the instructions given under How to Complete the RL-1 Slip (Box by Box Instructions). Also enter any additional information. |
Example – Calculation of the amounts to be entered in boxes A and I of an employee's RL-1 slip if the employee has a salary advance leave plan
An employee who earns $60,000 participates in a salary advance leave plan from 2024 to 2028. You advance the employee 80% of their salary ($48,000) during their leave of absence and the employee takes the leave in 2024.
For 2024, you must enter $48,000, which is the amount you advanced the employee during their leave, in boxes A and I.
For each year from 2025 to 2028, you must enter $48,000, which is the salary paid to the employee, in boxes A and I.
| Box | 2024 (leave) | 2025 | 2026 | 2027 | 2028 |
|---|---|---|---|---|---|
| Box A | $48,000 | $48,000 | $48,000 | $48,000 | $48,000 |
| Box I | $48,000 | $48,000 | $48,000 | $48,000 | $48,000 |