What are source deductions in Quebec?

As an employer or payer, you have to make source deductions of income tax on the remuneration subject to income tax that you pay an employee or a beneficiary. You must remit source deductions of income tax periodically, according to your remittance frequency, using the payment option that is most convenient for you.

What are employer contributions in Quebec?

Employers are responsible for deducting the following four amounts: the Canada Pension Plan contribution….How much do you have to deduct?

2019 payroll deduction rates
Program Rate paid by employer
Canada Pension Plan 5.10%
Employment Insurance 2.268% (1.75% in Quebec)
Québec Pension Plan 5.55%

What are source deductions?

What is a source deduction? Source deductions refers to the portion of pay you’re legally required to withhold from your employees’ paychecks and remit to the Canada Revenue Agency on their behalf.

What is the role of Revenue Québec from payroll perspective?

To ensure that all taxpayers pay their fair share to finance public services, we have been mandated by the Québec government to: collect income tax and consumption taxes. administer a number of assistance programs and any other collection and redistribution program entrusted to us by the government.

How much tax is deducted from salary in Quebec?


Québec tax bracket Québec tax rates
$15,533 to $44,545 15%
$44,546 to $89,080 20%
$89,081 to $108,390 24%
More than $108,391 25.75%

How do I pay my source deductions?

Go to My Payment website: https://www.canada.ca/en/revenue-agency/services/e-services/payment-save-time-pay-online.html. Select the bank and proceed payment at bank site.

What is QHIP in Quebec?

Note: QHIP stands for Quebec Health Insurance Plan.

How do you record source deductions?

The journal entry will record the wages expense and any deductions from the employee paychecks.

  1. Debit “Wages Expense” for the full amount the company must pay for the pay period.
  2. Credit “Net Payroll Payable” and any deductions required.
  3. Add the total number of debits and then add the total number of credits.

How much is tax in Québec?

The most common consumption taxes for Québec residents are: the goods and services tax (GST), which is calculated at a rate of 5% on the selling price; and. the Québec sales tax (QST), which is calculated at a rate of 9.975% on the selling price excluding the GST.

Does Québec use CRA?

Provincial and territorial governments develop their own tax laws and policies; however, the Canada Revenue Agency (CRA) collects and administers the individual income taxes on behalf of the provincial and territorial governments (except for the province of Quebec).

When to use Revenu Quebec source deductions guide?

Use this guide if you are an employer or a payer. It will help you meet your obligations with regard to source deductions and employer contributions. This document does not take into account the credit for contributions to the health services fund for employees on paid leave due to the COVID-19 pandemic.

When do you have to make source deductions?

As an employer, you are required to make source deductions and pay employer contributions on remuneration subject to such deductions and contributions that you pay an employee in any of the following situations: The employee reports for work at one of your establishments located in Québec.

How is remuneration subject to source deductions and employer contributions?

Consult Appendix 1 of the Guide for Employers: Source Deductions and Contributions ( TP-1015.G-V ), to see whether the remuneration you pay further to an industrial accident is subject to source deductions and employer contributions. Director’s fees are subject to the contributions to the health services fund and the WSDRF.

When do I pay my Revenu Quebec contribution?

Your contribution related to labour standards for the year must be received by Revenu Québec or by a financial institution by the last day of February of the following year. You must use the remittance slip included with the RL-1 summary to pay your contribution. If you are paying your contribution online, do not submit the paper remittance slip.