Contribution to the Workforce Skills Development and Recognition Fund
If all three of the following conditions are met, you are required to pay a contribution to the Workforce Skills Development and Recognition Fund (WSDRF):
- one of the basic conditions for making source deductions of income tax and paying employer contributions is met (be sure to read the special cases as well);
- your total payroll for the year is over $2 million;
- you allotted an amount representing less than 1% of your total payroll to eligible training expenditures.
You will be required to pay into the WSDRF a contribution equal to the difference between 1% of your total payroll and the amount of your eligible training expenditures.
To calculate your contribution, use the RL-1 Summary (RLZ-1.S-V, Summary of Source Deductions and Employer Contributions). Enter your total payroll and the amount of your eligible training expenditures.
The contribution for the year must be paid to us by the last day of February of the following year using a remittance method that is convenient for you. If you make your payment online, however, you do not have to send the remittance slip.
If you stop making remittances of source deductions and employer contributions, the deadlines for filing your documents vary depending on whether you stopped operating your business or no longer have employees.