RL-1 Slip – Employer That Succeeds Another Employer

If an employer succeeds another employer following the formation or winding-up of a corporation or following the acquisition of the major portion of the property of a business or of a separate part of a business, and the employees did not stop working, the successor employer and the previous employer must each file RL‑1 slips (see courtesy translation RL-1-T) for the period that concerns them.

Special rules may apply if an employer succeeds another employer following an amalgamation or the winding-up of a subsidiary.

Previous employer

See Deadline for Filing RL-1 Slips for a previous employer's deadline for distributing RL-1 slips to employees and filing RL-1 slips with us, when:

the previous employer stopped making periodic remittances of source deductions and employer contributions; or
the person required to file the RL-1 slips has died.

If the previous employer stopped operating their business, see Employer That Stops Carrying On Its Business.

For information about the amounts to be entered on the RL‑1 slips that the previous employer must file for their period, see How to Complete the RL-1 Slip (Box by Box Instructions).

Successor employer

The successor employer must file the RL‑1 slips with us and distribute them to employees by the last day of February of the year following the year covered by the slips.

See the instructions below for the information that the successor employer must enter on the RL-1 slips they file for their period.

Table – How the successor employer has to complete the RL-1 slip
Box	Information to be entered on the RL-1 slip
Box A	Enter the gross employment income that the successor employer paid.
Box B	Enter the total Québec Pension Plan (QPP) contributions withheld by the successor employer.
Box E	Enter the total Québec income tax withheld by the successor employer.
Box G	Enter the lesser of the following amounts: the pensionable salary or wages under the QPP that the successor employer paid; $66,600 minus the pensionable salary or wages under the QPP (maximum: $66,600) paid by the previous employer, if the previous employer paid its employer QPP contribution. If this amount is equal to zero, enter “0” in box G.
Box H	Enter the total Québec parental insurance plan (QPIP) premiums withheld by the successor employer.
Box I	Enter the lesser of the following amounts: the eligible salary or wages under the QPIP that the successor employer paid; $91,000 minus the eligible salary or wages under the QPIP (maximum: $91,000) paid by the previous employer. If this amount is equal to zero, enter “0” in box I.
Other boxes and additional information	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) for the period that concerns the successor employer. Also enter any additional information.

Example 1 – Calculation of the amounts that must be entered in boxes G and I of the RL-1 slip filed by the successor employer

An employee earned $90,000. Of that amount, $85,000 was paid by the previous employer. The total amount of $90,000 constitutes pensionable salary or wages under the QPP and eligible salary or wages under the QPIP. The previous employer paid the full employer contribution on the employee's pensionable salary or wages.

The successor employer must enter the lesser of the following amounts in box G:

$5,000, which is the pensionable salary or wages under the QPP that the successor employer paid to the employee;
0, which is $66,600 minus the pensionable salary or wages under the QPP (maximum: $66,600) paid by the previous employer.

Since the lesser amount is 0, the successor employer must enter “0” in box G.

The successor employer must also enter the lesser of the following amounts in box I:

$5,000, which is the eligible salary or wages under the QPIP that the successor employer paid to the employee;
$6,000, which is $91,000 minus the eligible salary or wages under the QPIP (maximum: $91,000) paid by the previous employer.

Since the lesser amount is $5,000, the successor employer must enter that amount in box I.

Example 2 – Calculation of the amounts that must be entered in boxes G and I of the RL-1 slip filed by the successor employer

An employee earned $29,000. Of that amount, $19,000 was paid by the previous employer. The total amount of $29,000 constitutes pensionable salary or wages under the QPP and eligible salary or wages under the QPIP. The previous employer paid the full employer contribution on the employee's pensionable salary or wages.

The successor employer must enter the lesser of the following amounts in box G:

$10,000, which is the pensionable salary or wages under the QPP that the successor employer paid to the employee;
$47,600, which is $66,600 minus the pensionable salary or wages under the QPP (maximum: $66,600) paid by the previous employer.

Since the lesser amount is $10,000, the successor employer must enter that amount in box G.

The successor employer must also enter the lesser of the following amounts in box I:

$10,000, which is the eligible salary or wages under the QPIP that the successor employer paid to the employee;
$72,000, which is $91,000 minus the eligible salary or wages under the QPIP (maximum: $91,000) paid by the previous employer.

Since the lesser amount is $10,000, the successor employer must enter that amount in box I.

RL-1 Slip – Employer That Succeeds Another Employer

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