Purchase of Shares Issued by Fondaction
The temporary increase in the tax credit for the purchase of shares issued by Fondaction, le Fonds de développement de la Confédération des syndicats nationaux pour la coopération et l'emploi, which came into effect on June 1, 2009, comes to an end on May 31, 2015. As such, the rate of the tax credit for the purchase of shares issued by Fondaction decreases from 25% to 15% for any share or fraction of a share purchased after May 31, 2015. This changes the way income tax is withheld from an employee who pays into the fund through source deductions.
If you use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to determine the amount of income tax to withhold, you must subtract from the employee's gross remuneration, for a pay period that begins after May 31, 2015, 75% (rather than 125%) of the amount deducted from the employee's remuneration for the purchase of shares issued by Fondaction. For more information, refer to section 5.4.1 of the Guide for Employers (TP-1015.G-V).
If you use the formulas in the guide entitled Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V) to determine the amount of income tax to withhold, you must take into account the changes to the formulas. For more information, refer to guide TP-1015.F-V.