As a business in Canada, hiring your first employee involves the Canada Revenue Agency (CRA).
If your business is based in Quebec, you’ll need to get familiar with Revenue Quebec. Especially if you’re planning on hiring your first employee.
So let’s break it down.
Register Your Business With Revenu Quebec
If you haven’t already, you’ll need to register your business with Revenu Quebec, which is also a prerequisite for obtaining your identification number.
Unlike other businesses in Canada, which report remittances only to the CRA, businesses in Quebec will need to remit additional taxes and other deductibles through Revenu Quebec.
How Do You Register Your Business In Quebec?
There are a few ways you can register with Revenu Quebec:
- Register online directly with Revenu Quebec
- Fill out form LM-1-V, Application for Registration
- Call Revenu Quebec directly for client services
What Do You Report to Revenu Quebec?
Your regular remittances to Revenu Quebec will generally include:
- Quebec income taxes
- Contributions to the Quebec Pension Plan (QPP) and Quebec Parental Insurance Plan (QPIP)
- Contributions to the health services fund
- CNESST contributions (more on this later)
And before the last day of next year’s February, you’ll also need to remit:
- Contributions toward labour standards
- And, if your payroll for the year exceeds $2 million, payment to the Workforce Skills Development and Recognition Fund (WSDRF)
Once your business has an employee, you’ll also need to register with Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST), which carries a premium. You’ll need to make periodic payments through Revenu Quebec at the same time as your regular employee deductions.
What if You Don’t Register in Time?
If you don’t have a business identification number before you pay your employee, you’ll still need to send your remittances to Revenu Quebec. If you hadn’t already opened one, an account will be opened for you. You’ll also receive forms for you to use for your next remittances.
When sending your first remittance payment directly to Revenu Quebec without a form, you’ll need to send a cheque of the amount (payable to the Minister of Revenue of Quebec) along with a letter that includes a few key pieces of information:
- Your name and address
- The date periods of the remittance you’re paying
- The amounts being remitted (income tax, QPP, health services)
- Your business identification number and provincial enterprise number, if applicable
Personal Taxes For Your Employee
Similar to the rest of Canada, your new employee will also need to fill out a TD1 form, Personal Tax Credits Return, with the CRA to determine how much tax needs to be deducted.
But along with the TD1, you’ll also need to file TP1015.3-V form with Revenu Quebec. Check the CRA for more details on filing a TD1 and TP1015.3-V form.
What Is An RL-1 Slip?
Just as any business in Canada files a T4 to the CRA, a business based in Quebec will also need to submit an RL-1 slip to Revenu Quebec. Essentially, the RL-1 slip reports the salary or wages paid to your employee for the year and any other types of remuneration they may have received.
You’ll need to file an RL-1 slip for an employee if you’ve withheld taxes and deductions; failure to file can result in a penalty. You’ll also need to file an RL-1 summary, which contains an overview of the information you’re filing.
When Is The Deadline To File?
Let’s talk about deadlines.
The last day of the following February is the deadline to both file your RL-1 slips and summary, and hand your employee their copy of the RL-1 slip.
For more details on RL-1 slips and how to file online, you can learn more at Revenu Quebec.
While there’s a few extra steps for a business based in Quebec, you’ll find that there’s at least one commonality, which is that both Revenu Quebec and CRA deadlines fall on the last day in February. With a solid payroll system in place, the additional reporting to Revenu Quebec is a responsibility that happens along with your duties to the CRA.
And if you are looking for a robust payroll system that fits the needs of your business, check out PaymentEvolution’s Payroll. Our comprehensive system is customizable, dependable, and saves you time.
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