Contributions to a Multi-Employer Insurance Plan
Source deductions and contributions
A benefit related to contributions you make to an employee's multi-employer insurance plan is subject to source deductions of income tax. However, you must stop withholding income tax when the total of the contributions reaches the estimated reasonable amount of the taxable benefit that would be granted to the employee if he or she received coverage under this plan for the entire year.
You must, however, continue to make your employer Québec Pension Plan (QPP) contributions and employer contributions on the value of the benefit.
The contributions you make to a multi-employer insurance plan are not subject to Québec parental insurance plan (QPIP) premiums.
Information to enter on the RL-1 slip
If you pay contributions to the administrator of a multi-employer insurance plan for a personal insurance plan (other than insurance for total or partial loss of income from an office or employment), enter in boxes A and P of the employee's RL-1 slip (see courtesy translation RL-1-T) the portion of the contributions (and of the related tax) applicable to the work performed by the employee during the year.
Even though multi-employer insurance plans are group insurance plans, you must not enter an amount in boxes J and L of the employee's RL-1 slip. The administrator of the plan will file an RL-22 slip (see courtesy translation RL-22-T) and include, in box A of the slip, the value of the benefit received by the employee with respect to the plans covered by boxes J and L of the RL-1 slip.
The administrator of the multi-employer insurance plan must also enter, in box B of the RL-22 slip, the value of the employee's coverage under a private health services plan. This amount is already included in box A and may be considered an expense that gives entitlement to the tax credit for medical expenses. The amount in box B of the RL-22 slip is the same as the amount in box J of the RL-1 slip.
If you are the administrator of a multi-employer insurance plan, click RL-22 Slip – Employment Income Related to Multi-Employer Insurance Plans.