Remuneration or Number of Pay Periods Not Covered by Table TP-1015.TI-V
The Source Deduction Table for Québec Income Tax (TP-1015.TI-V) cannot be used to determine the source deduction of income tax if:
- the remuneration subject to source deductions of income tax exceeds the maximum amount for a given period (for example, $8,000 per pay period where remuneration is paid twice-monthly); or
- the number of pay periods in the year is not 53, 52, 27, 26, 24 or 12.
To determine the amount of income tax to withhold in such cases, proceed as follows:
- Estimate the employee's or the beneficiary's annual remuneration by adding the following amounts, as applicable, to the gross annual remuneration (where applicable):
- the estimated gross commissions for the year, if the employee did not complete the Statement of Commissions and Expenses for Source Deduction Purposes (form TP-1015.R.13.1-V);
- the estimated net commissions for the year, if the employee completed form TP-1015.R.13.1-V. To calculate the estimated net commissions, multiply the estimated gross commissions for the year by the percentage of commissions determined on line 4 of form TP-1015.R.13.1-V.
- Subtract, from the individual's estimated annual remuneration, the amounts that you must take into account to calculate the remuneration subject to source deductions of income tax.
- Estimate the income tax for the year based on the taxation rates given below. Then subtract from the estimated income tax the total of the following amounts:
- 15% of the amount on line 10 of form TP-1015.3-V (remember to take indexation into account if the form the individual completed was not the 2018-01 version) or 15% of the basic amount, if the individual has not completed form TP-1015.3-V;
- where applicable, the total tax credits (such as the tax credits for donations and gifts and for medical expenses) that we authorized if the individual completed the Application for a Reduction in Source Deductions of Income Tax (form TP-1016-V).
Result of (b):
- Greater than $0 but less than or equal to $43,055: taxation rate of 15%
- Greater than $43,055 less than or equal to $86,105: $6,458 in income tax withheld on the first $43,055, plus 20% of the amount that exceeds $43,055
- Greater than $86,105 but less than or equal to $104,765: $15,068 in income tax withheld on the first $86,105, plus 24% of the amount that exceeds $86,105
- Greater than $104,765: $19,546 in income tax on the first $104,765, plus 25.75% of the amount that exceeds $104,765
- To determine the source deduction rate, divide the amount obtained in (c) by the estimated annual remuneration calculated in (a).
- Multiply the gross remuneration for each pay period by the source deduction rate calculated in (d) to determine the income tax to withhold for the pay period.
Jay is an employee who is paid weekly. He receives a gross salary of $4,000 and a taxable benefit of $200 for each pay period. For each pay period, you withhold $40 from Jay's remuneration as a contribution to an RPP.
Jay, who completed the 2018-01 version of form TP-1015.3-V, entered $21,550 on line 10 and $1,320 on line 19.
|(a) Estimated salary for the year: $4,000 x 52 pay periods||$208,000|
|Estimated taxable benefits for the year: $200 x 52 pay periods||+||$10,400|
|Estimated annual remuneration||=||$218,400|
|(b) RPP contribution for the year, and estimated deductions for the year entered on line 19 of form TP-1015.3-V: ($40 x 52) + $1,320||−||$3,400|
|Annual remuneration subject to source deductions of income tax||=||$215,000|
|(c) Calculation of estimated income tax for the year: |
Income tax on the first $104,765
|Plus 25.75% on the remainder: ($215,000 − $104,765) × 25.75%||+||$28,386|
|Multiply the amount on line 10 of form TP-1015.3-V by 15%: $21,550 x 15%.||−||$3,233|
|Estimated income tax for the year||=||$44,699|
|(d) Divide the estimated income tax for the year by the estimated annual remuneration: $44,699 ÷ $218,400.||0.2047|
|(e) Gross remuneration for the period: ($4,000 + $200)||×||$4,200|
|Income tax to withhold for the pay period1||=||$859.74|
- If the amount of remuneration paid to Jay is the same for each pay period, withhold $859.74 per pay period. Otherwise, multiply any amount of gross remuneration not covered by table TP-1015.TI-V by the rate of 0.2047.
Tyrone is an employee who is paid every two weeks. He receives $8,200 in remuneration (basic salary and commissions) for a given pay period (this amount is not covered by table TP-1015.TI-V). Furthermore, Tyrone's gross salary per pay period is $769.23, and you estimate that his net commissions for the year will be $120,000. For each pay period, you must withhold $100 as a contribution to an RPP.
In 2004, Tyrone completed the 2004-01 version of form TP-1015.3-V, and entered $9,150 on line 10, the basic amount on line 1 for 2004.
|(a) Estimated gross salary for the year: $769.23 x 26 pay periods||$20,000|
|Estimated net commissions for the year||+||$120,000|
|Estimated annual remuneration||=||$140,000|
|(b) RPP contribution: $100 x 26 pay periods||−||$2,600|
|Annual remuneration subject to source deductions of income tax||=||$137,400|
|(c) Calculation of estimated income tax for the year: Income tax on the first $104,765||$19,546|
|Plus 25.75% on the remainder: ($137,400 − $104,765) × 25.75%||+||$8,404|
|Amount on line 10 of form TP-1015.3-V: $15,0121 × 15%||−||$2,252|
|Estimated income tax for the year||=||$25,698|
|(d) Divide the estimated income tax for the year by the estimated annual remuneration: $25,979 ÷ $140,000.||0.1836|
|(e) Gross salary and the commissions for the period||×||$8,200|
|Income tax to withhold for the pay period2||=||$1,505.52|
- If the version of form TP-1015.3-V that Tyrone completed is not the 2018-01 version, you must index the amount entered on line 10 of the form and use instead the basic amount from the 2018-01 version of form TP-1015.3-V.
- To determine the income tax to withhold from any other remuneration not covered by table TP-1015.TI-V, multiply the amounts paid by the rate of 0.1836.