Québec employers who fail to deduct source deductions from their employees' pays will be subject to a

penalty of up to 15% of the amount that should have been withheld.

British Columbia, Manitoba, Newfoundland and Labrador, Ontario and Québec help finance their
provincial health care plans through employer taxes and levies. Other provinces and territories support their health
care plans through general tax revenues.
- British Columbia Employer Health Tax
- Manitoba Health and Post-Secondary Education Tax Levy–for filing-Last day of march following yr
- Newfoundland and Labrador Health and Post-Secondary Education Tax
- Ontario Employer Health Tax

Retail Sales Tax of 8% is payable on the premium for employees residing in Ontario. Manitoba – 7%

Newfoundland and Labrador employers with an annual payroll of $2,000,000.00 or less are exempt from the Health
and Post-Secondary Education Tax (HAPSET).

The first $1,000,000.00 of the annual payroll is exempt from Employer Health Tax for Ontario employers in the
private sector with an annual Ontario payroll of $5 million or less.

If an employer is not open for business in Ontario for the complete year, the Employer Health Tax exemption must
be pro-rated. To calculate the pro-rated exemption, divide the full exemption of $1,000,000.00 by 365 days to get a
daily rate of $2,739.73 (rounded to two decimal places). Multiply the daily rate by the number of days open in the
year, which is 61, to arrive at $167,123.53.

Calculate the annual Employer Health Tax for an Ontario private sector payroll with an annual Ontario payroll of
$4,580,000.00. Therefore the calculation is $4,580,000.00 minus $1,000,000.00 equals $3,580,000.00 multiplied
by 1.95% equals $69,810.00.

Employers in Manitoba only begin to pay the Health and Post-Secondary Education Tax Levy when the cumulative
remuneration for the year exceeds $2,250,000.00. Once that threshold is reached, the payroll tax is payable on the
remuneration exceeding $2,250,000.00, and is calculated using the tax rate of 4.3% of the remuneration paid each
month for the remainder of the year,

The deadline for filing the Ontario Employer Health Tax Annual Return is by March 15th of the following year.

The Employer Health Tax in Ontario is a tax based on an employer's Ontario payroll and Employer Health Tax
remittances in Ontario are payable to the Minister of Finance.

The process of taking a piece of the delivered functionality of the payroll system and changing it to meet the
requirements of the organization is called Customization

SaaS removes the need for companies to have specialized IT resources that install, set-up or maintain the software.

Security of information refers to the internal processes of, and procedures for, managing and protecting personal
information.

Outsourced services mean the employer has a written contract with a third party to produce employee pays,
provide pay statements, year-end tax slips, ROEs, and management reports. Comprehensive outsourcing includes
all of these functions with the addition of managing employee requests and queries. This means the third party
becomes the acting payroll department on behalf of the employer. Comprehensive outsourcing takes the job of
payroll fully out of the organization.

Packaged software is normally used by small organizations.

Calculating Assessable Earnings:

The employee-employer status, Earnings legislated as assessable and the total dollar amount of assessable
earnings up to a maximum amount for each employee referred to as maximum assessable earnings.

Each province or territory has a workers' compensation board or commission that determines the assessability of
earnings and the premium rates

For the Québec construction industry, the assessable earnings, as well as the excess earnings, are calculated
weekly. The weekly assessable earnings are calculated by dividing the annual maximum insurable earnings by
52.14 weeks and pro rated.

Workers' compensation is a legislated provincial/territorial insurance program.

Workers’ compensation premium payments in NS are remitted to the CRA at the same time as payroll remittances
and based on their Actual current years payroll. For this reason, payroll service providers can remit the payments
on behalf of their NS clients.

Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST) payments are remitted to
Revenu Québec at the same time as payroll remittances, payments can be made by payroll service providers

QPP, QPIP ER & EE, ER Contribution to the health services fun and CNESST are remitted to RQ

The remittance frequencies for the payroll tax in the Northwest Territories and Nunavut are: monthly, quarterly,
semi-annually, annually and seasonal.

Shift premiums is a types of earnings are assessable for workers' compensation in all jurisdictions.

In jurisdictions that provide an instalment plan, the employer must meet all the following criteria to be eligible to
participate: o the employer’s total remittance for the year exceeds a specified minimum amount

o the employer’s account is not in arrears

o the annual statement of payroll is received by the due date

The CRA sends Form PD7A(TM) to all accelerated threshold 1 and 2 remitters on a quarterly basis.

WorkSafe BC classifies employers with a total annual remittance of under $2,000.00 as Annual remitters, with the
remittance deadline between March 3rd and 11th of the following year. Employers with a total annual remittance of
$2,000.00 or more are classified as Quarterly remitters with payment deadlines by the 20th of the month following
the end of each quarter.

Prince Edward Island has not yet enacted its own pension legislation and therefore defaults to the Federal Pension
and Benefits Standards Act.

Workers' compensation legislation requires employers in every province and territory to file an annual statement of
payroll with the exception of Nova Scotia where the annual statement does not need to be completed if there are
no changes.

In Ontario, if the annual Reconciliation Form is not received by the due date, the maximum penalty the Workplace
Safety and Insurance Board will charge is $1,000.00 per each month the form is not received.

The due dates of an employer's remittance of workers' compensation premiums will vary by jurisdiction, and are
often dependent on the size of the total assessable payroll.

British Columbia and Newfoundland and Labrador, does the industry type, for example, fishing and wood
harvesting industries, affect the remittance frequency as well.

Workers' compensation legislation requires employers in every province and territory to file an annual statement of
payroll. Workers' compensation plans are funded solely by employers.

Workers' compensation premiums are calculated on the total assessable earnings at a rate determined by the
jurisdiction, the industry and experience rating.

The only situation in which the annual maximum assessable earnings may be prorated are in the construction
industry in Québec. Therefore, divide the annual maximum assessable earnings of $98,000.00 by 52.14 weeks for
a maximum weekly assessable earning amount of $1,879.56. Since Pierre's earnings of $2,104.56 are greater than
the maximum weekly assessable amount of $1,879.56, his maximum weekly assessable amount is $1,879.56.

R – Original; D – Cancelled; A – Amended

BOX A – Empt Insurance before source Deductions -This includes wages; salaries (including retroactive pay);
premiums; vacation pay; gratuities; tips; commissions; directors’ fees; taxable allowances and benefits; total
wages or salary earned, not only paid, for employees participating in deferred salary, ER RRSP, Bonus, Non cash TB
for group term life Insurance, ER paid medical benefits

B.A – QPP Contribution B.B – Second QPP Contribution C- EI Premiums D – RPP Contribution E – Quebec
Income Tax F – Union Dues G – Pensionable salary – Maximum $ 81200 H – QPIP I – QPIP
Insurable earnings – Max $98000 J – ER contribution under a private health services M – Commissions
N – Charitable donations and Gifts S – Tips received T – Tips allocatedO – Other Income not included in Box A
– Wages in lieu, Eligible and non eligible Retiring all L – Other benefits – Non Cash TB, Allowances, gifts, Tuition
fees, ER RRSP, Parking spaces provided by ER, Interest free loans, professional membership dues

RJ – Retiring ALL - There is no requirement to separate the eligible and the non-eligible portion of the retiring
allowance; payment of wages in lieu of notice is considered a retiring allowance in Québec

Code G-2 was added to report Canada Pension Plan pensionable earnings earned by an employee outside the
province of Québec.

If a discrepancy is found pertaining to contributions to the health services fund or the Workforce Skills
Development and Recognition Fund or to the financing of the Québec Labour Standards, they will send the
employer a form LMU-142-V, Statement of Employer Contributions.

Commission des normes, de l'équité, de la santé et de la sécurité du travail (CNESST) insurance premium
remittances are included with Revenu Québec remittances on a regular basis but are reconciled with the CNESST
Annual Statement of Wages.

The RL-1 slip does not contain a pension adjustment box; the pension adjustment is only reported on the federal T4
or T4A slip.

An amended copy of the Summary of Source Deductions and Employer Contributions - RLZ-1.S-V must be filed with
any amended or cancelled RL-1 slips, incorporating the changes made to the original filing.

Organizations are required to file a Summary of Source Deductions and Employer Contributions – RLZ-
1.S-V if they:

• Withheld Québec income tax at source • Withheld QPP contributions • Withheld QPIP premiums

• Are required to make contributions to the QPP, the QPIP or the health services fund

• Are required to remit Contributions Related to Labour Standards

• Are required to contribute to the WSDRF -Workforce Skills Development and Recognition Fund – Remitted
annually

The remittances made to Revenu Québec for Commission des normes, de l'équité, de la santé et de la sécurité du
travail (CNESST) premiums will be reconciled with the CNESST Annual Statement of Wages.

The Revenue Québec form, Summary of Source Deductions and Employer Contributions – RLZ-1.S-V, is sent to
employers sometime before the end of the year, usually in November.

Contributions paid by the employee to a private health services plan are recorded using footnote code 235 on the
RL-1 slip.

Employers who file more than 5 RL-1, RL-2 or RL-25 slips must submit their RL data in XML format via the Internet.

The health services fund employer contribution rate is determined by the employer's total payroll and the payrolls
of its associated companies worldwide.

Employers' costs for Québec Pension Plan and Québec Parental Insurance Plan must be factored into the budget, as
they are part of the organization's expenses for the year

REMITTER TYPE PAYROLL CHEQUE/DEPOSIT REMITTANCE IS DUE NO LATER

ATES THAN...
Annually-did not exceed Pay dates during the The 15th of the month following
$2,400 in the previous reference year the last month of the year in which
year/not expected to exceed remuneration was paid (January 15
$2,400 in the current yr in most cases)
Quarterly – Avg mthly remit January 1 – March 31 April 15
for 2 years did not exceed April 1 – June 30 July 15
$3,000 and new employers July 1 – September 30 October 15
who have a mthly remit of October 1 – December 31 January 15
less than $1,000
Monthly-avg mthly remit for 1st of the month to the end The 15th of the following month
the second preceding of the month
taxation year was less than
$25,000.00
Twice Mthly-avg mthly remit 1st to 15th of the month The 25th of the same month
for 2nd preceding taxati 16th to end of the month The 10th of the following month
yr/at least $25,000 but less
than 100,000
Weekly - avg mthly remit for 1st to 7th of the month The third working day after the last
the 2nd preceding taxation 8th to 14th of the month day in each period
year $100,000.00 or more 15th to 21st of the month
22nd to end of the month