Revenu Québec Releases Update Bulletin

Revenu Québec has released an employer bulletin to correct an error in its employers' guides concerning directors' fees and to add information about whether other types of payments are subject to Quebec Parental Insurance Plan (QPIP) premiums.
By
|hrreporter.com|Last Updated: 08/24/2006

The bulletin,

Notice to Employers

(PZ-856-V, 2006-02), corrects information in the 2006-01 versions of the

Guide For Employers: Short Version

(TPF-1015.GS-V).

It advises employers that the table that appears in section 4.2.1 of both guides should have "yes" for directors' fees in the column for QPIP since QPIP applies to all directors' fees. The bulletin also provides corrected information about directors' fees for sections 7.9.1 and 7.9.2 in both guides and advises employers to replace the information in the guides with the update.

For directors who are Canadian residents, section 7.9.1 should now read:

"If you pay directors' fees to a director who is resident in Canada and

who also receives a regular salary

(Revenu Québec's emphasis) or if you pay

only

director's fees to a director,

you must withhold and pay Québec parental insurance plan premiums, provided the conditions given in table 4.1.1 are met.

"

For non-resident directors, section 7.9.1 should now read:

"If you pay directors' fees to a director who is not resident in Canada and

who also receives a regular salary

or if you pay

only

directors' fee to a director,

you also must withhold and pay Québec parental insurance plan premiums, provided the conditions given in table 4.1.1 are met.

"

The bulletin also includes a table of payments and shows whether or not they are subject to QPIP premiums. The payments are not included in the original guides. For instance, the table shows that employer contributions to employee individual RRSPs are insurable for QPIP, but employer contributions to group RRSPs from which employees cannot withdraw amounts until they retire or their employment ends are not subject to QPIP premiums.

The table also shows that allowances paid to municipal officers are subject to QPIP premiums whether or not the allowance is taxable.

The bulletin is available on Revenu Québec website at http://www.revenu.gouv.qc.ca/eng/publications/pz/pz-856-v.asp.

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