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Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Revised : November 2003 Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Solidarity Fund QFL Monthly Remittances Tax Breaks Forms and Notice of Change Exit

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employer s interactive administrative guide iag regarding payroll deduction

Employer’s InteractiveAdministrative Guide (IAG) Regarding Payroll Deduction

Revised : November 2003

employer s interactive administrative guide iag regarding payroll deduction2
Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Solidarity Fund

QFL

Monthly Remittances

Tax Breaks

Forms and Noticeof Change

Exit

slide3

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Solidarity Fund

QFL

Monthly Remittances

Tax Breaks

Forms and Noticeof Change

About Us

Our mission

Exit

about us
About Us

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Solidarity Fund

QFL

With close to 550,000 shareholders and net assets of $4.6 billion1,the Solidarity Fund QFL is the largest development capital corporation dedicated to SMEs in Québec.

As the only organization of its kind, the Fund calls upon public savings and the solidarity of the Québec population to fulfill the mission it undertook upon its inception in 1983.

About Us

Our Mission

1 Shareholders, net assets as at June 30, 2003.

our mission
Our Mission

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

  • Invest in undertakings yielding an economic impact in Québec and provide them with services in order to contribute to their development and to create, maintain or protect jobs.
  • Promote economic training for workers so they can increase their influence on the economic development of Québec.
  • Stimulate the Québec economy by making strategic investments that will be of benefit to Québec workers and undertakings.
  • Make workers aware of the need to save for retirement and encourage them to do so, as well as to participate in the development of the economy by subscribing Fund shares .

Solidarity Fund

QFL

About Us

Our Mission

In pursuing its mission, the Fund strives to offer stable and reasonable long-term returns to its shareholders through a balanced distribution of assets between its job-creating investments and its marketable securities portfolio.

slide6

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Solidarity Fund

QFL

Monthly Remittances

Tax Breaks

Forms and Noticeof Change

Making Remittances to the Fund

Your Reference Number

Notice to Employers

Remittance Notice

Detailed Remittance List and Remittance List

Access to our Secure Website

Terms of Remittance

Payment Procedure

Payroll Processing Services Providers

Exit

making remittances to the fund
Making Remittances to the Fund

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Monthly Remittances

Making remittances to the Fund is both simple and easy. To serve you better, we offer a wide range of modern and efficient tools (several means of transmission and mailing are available). Just choose the option that is the most convenient for you.

What is more, we assure you that the processing of your monthly remittances will be done in a precise and confidential manner.

Making Remittances to the Fund

Your Reference Number

Notice to Employers

Remittance Notice

Detailed Remittance List and Remittance List

Access to our Secure Website

Terms of Remittance

Payment Procedure

Payroll Processing Services Providers

your reference number
Your Reference Number

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Monthly Remittances

A five-digit reference number will be assigned to you by the Fund. Please refer to this number any time you communicate with the Fund in writing or by telephone.

Making Remittances to the Fund

Your Reference Number

Notice to Employers

Remittance Notice

Detailed Remittance List and Remittance List

Access to our Secure Website

Terms of Remittance

Payment Procedure

Payroll Processing Services Providers

notice to employers
Notice to Employers

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Monthly Remittances

You may choose to receive every month, by mail, by fax or via our Secure Website either a Remittance Notice, a Remittance List or a Detailed Remittance List(see specimens). Please read it carefully since this is the way we communicate with our 6,000 participating employers.

Making Remittances to the Fund

Your Reference Number

Notice to Employers

Remittance Notice

Detailed Remittance List and Remittance List

Access to our Secure Website

Terms of Remittance

Payment Procedure

Payroll Processing Services Providers

remittance notice
Remittance Notice

All employers who make monthly remittances receive a Remittance Notice. Please make sure that you include the tear off portion with your monthly remittance payments. This greatly facilitates our operations.

detailed remittance list and remittance list
Detailed Remittance List and RemittanceList

Most employers who make monthly remittances using the list of subscriptions provided by the Fund, receive the Detailed Remittance List. The employers must validate and correct all information, if need be.

The Detailed Remittance List is then returned to the Fund with the tear off Remittance Notice portion.

detailed remittance list and remittance list12
Detailed Remittance List and RemittanceList

Certain employers receive the Remittance List. These employers must fillout this form and return it to the Fund with the Remittance Notice tear off portion.

access to our secure website
Access to Our Secure Website

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Monthly Remittances

We can transmit your Notices and Remittance List via our Secure Website, and you only need to print them out. We can also transmit your Notices and Remittance List in an Excel format file where you may enter your information. If you are interested, please sign-up by email at remisedas@fondsftq.com or by fax at: (514) 383-2503.

Making Remittances to the Fund

Your Reference Number

Notice to Employers

Remittance Notice

Detailed Remittance List and Remittance List

Access to our Secure Website

Terms of Remittance

Payment Procedure

Payroll Processing Services Providers

terms of remittance
Terms of Remittance

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Monthly Remittances

All payroll deductions made in the course of a month must be remitted to the Fund no later than the fifteenth (15th) day of the following month, in accordance with Section 27 of Act 192, an act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.).

In the event of any disruption of employment (illness, CSST, etc.),no payroll deduction will be made retroactively upon the employee’s return, unless any agreement to the contrary has been negotiated between the parties.

Employees can cash out their bonuses, banked vacation, sick leave or overtime hours and contribute these amounts to the Fund’s RRSP. A specific remittance list must be submitted to us in such cases.

Making Remittances to the Fund

Your Reference Number

Notice to Employers

Remittance Notice

Detailed Remittance List and Remittance List

Access to our Secure Website

Terms of Remittance

Payment Procedure

Payroll Processing Services Providers

paym ent procedure
Payment Procedure

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Monthly Remittances

You may pay any owed amounts by:

  • Cheque payable to the Fonds de solidarité FTQ;
  • Direct deposit;
  • Electronic funds transfer (ETF), by Internet via your financial institution website (AccèsD Affaire, Clic paiement, etc.).

Making Remittances to the Fund

Your Reference Number

Notice to Employers

Remittance Notice

Detailed Remittance List and Remittance List

Access to our Secure Website

Terms of Remittance

Payment Procedure

Payroll Processing Services Providers

payroll processing services providers
Payroll Processing ServicesProviders

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Monthly Remittances

Partnerships have been formed with the following payroll subcontractors: CGI (Banque Nationale);Service de paie Desjardins (SPD); Société GRICS;and Coba.

If you do business with these providers, please contact them to be informed about the procedure to follow.

Making Remittances to the Fund

Your Reference Number

Notice to Employers

Remittance Notice

Detailed Remittance List and Remittance List

Access to our Secure Website

Terms of Remittance

Payment Procedure

Payroll Processing Services Providers

slide17

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Solidarity Fund

QFL

Monthly Remittances

Tax Breaks

Forms and Noticeof Change

Tax Benefits of Fund Shares

Government Authorizations

Payroll Processing Services Providers

Reference Documents

Example of Payroll Calculations with Payroll Deduction

Example of Payroll Calculations with Payroll Deduction and Employer Contribution

Exit

tax benefits of fund shares
Tax Benefits of Fund Shares

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Tax Breaks

Upon buying Fund shares, your employees receive two tax credits reducing the income tax payable on the amount invested by 30%(15% Québec + 15% federal).

These savings can go up to a maximum of $1,500 per year on a $5,000 investment, that is, 30% of $5,000.

By registering their shares in the Fund’s RRSP, your employees may benefit from double tax savings, since the 30% credit is added on the income tax reduction obtained from the usual RRSP deduction granted to any traditional RRSP.

Tax Benefits of Fund Shares

Government Authorizations

PayrollProcessing Services Providers

Reference Documents

Example of Payroll Calculations with Payroll Deduction

Example of Payroll Calculations with Payroll Deduction and Employer Contribution

government authorizations
Government Authorizations

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Tax Breaks

The Fund has obtained an authorization from the Québec and federal governments for all participating employers to reduce the amount of tax withholding from each pay for shareholders subscribing by payroll deduction. Therefore, employers do not have to act in this matter.

Tax Benefits of Fund Shares

Government Authorizations

PayrollProcessing Services Providers

Reference Documents

Example of Payroll Calculations with Payroll Deduction

Example of Payroll Calculations with Payroll Deduction and Employer Contribution

payroll p rocessing services providers
Payroll Processing Services Providers

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Tax Breaks

Most companies that offer payrollprocessing services have the means to process payroll deductions as well as tax breaks with respect to Fund shares.

We strongly advise that you carry out a payroll test to ensure that your system complies with tax measures.

Tax Benefits of Fund Shares

Government Authorizations

PayrollProcessing Services Providers

Reference Documents

Example of Payroll Calculations with Payroll Deduction

Example of Payroll Calculations with Payroll Deduction and Employer Contribution

reference documents
Reference Documents

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Tax Breaks

Guide for Employers – Source deductions and contributions

TP-1015.G, Revenu Québec.

http://www.revenu.gouv.qc.ca/documents/eng/formulaires/tp/tp-1015.g-v(2004-01).pdf

http://www.revenu.gouv.qc.ca/eng/services/sgp_winras/index.asp

Payroll Deductions formulas for Computer Programs, T-4127, Revenu Canada.

http://www.ccra-adrc.gc.ca/E/pub/tg/t4127-jan/t4127-jan04e.pdf

http://www.ccra-adrc.gc.ca/tax/business/tod/menu-e.html

Tax Benefits of Fund Shares

Government Authorizations

PayrollProcessing Services Providers

Reference Documents

Example of Payroll Calculations with Payroll Deduction

Example of Payroll Calculations with Payroll Deduction and Employer Contribution

example of p ayroll c alculations with p ayroll deduction

Revenu Québec Revenu Canada

Example of Payroll Calculations with Payroll Deduction

Salary $500.00 $500.00

Gross income $500.00 $500.00

Less the deduction- Solidarity Fund QFL RRSP (employee) ($10.00) ($10.00)

Taxable income $490.00 $490.00

Income tax payable $xxx,xx $xxx,xx

Less the income tax credits - QPP $xxx,xx $xxx,xx - Employment insurance $xxx,xx $xxx,xx - Personal $xxx,xx $xxx,xx

Income tax payable $xxx,xx $xxx,xx

Less the income tax credits for the Fund- 15% of the amount subscribed ($10) ($1.50)- 15% of the amount subscribed ($10) ($1.50)

  • Relevé 10: An income statement issued by the Fund twice a year that attests to the sum of contributions paid to the employee’s account. This statement is sent by the Fund to the personal address of the employee.

To be deducted before determining the taxes to be paid

Must be calculated based on the gross income

The 15% of tax credit for each government tax bracket reduces taxpayable

example of payroll calculations with payroll deduction and employer contribution

Revenu Québec Revenu Canada

Salary $500.00 $500.00

Add the employer’s financial contribution to the employee Fund RRSP (if applicable) $10.00 $10.00

Gross income $510.00 $510.00

Less the deduction- Solidarity Fund QFL RRSP (employee) ($10.00) ($10.00)- Solidarity Fund QFL RRSP (employer)(if applicable) ($10.00) ($10.00)

Taxable income $490.00 $490.00

Income tax payable $xxx,xx $xxx,xx

Less the income tax credits - QPP $xxx,xx $xxx,xx - Employment insurance $xxx,xx $xxx,xx - Personal $xxx,xx $xxx,xx

Income tax payable $xxx,xx $xxx,xx

Less the income tax credits for the Fund- 15% of the amount subscribed ($20) ($3.00)- 15% of the amount subscribed ($20) ($3.00)

Example of Payroll Calculations with Payroll Deduction and Employer Contribution
  • T4 slip andRelevé 1: Any financial contribution paid by the employer is taxable and must be added to the employee’s gross income, unlike that of the employee, which is not included.
  • Relevé 10: An income statement issued by the Fund twice a year that attests to the sum of contributions paid to the employee’s account. This statement is sent by the Fund to the personal address of the employee.

To be deducted before determining the taxes to be paid

Must be calculated based on the gross income

The 15% of tax credit for each government tax bracket reduces tax payable

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Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Solidarity Fund

QFL

Monthly Remittances

Tax Breaks

Forms and Noticeof Change

Which Form Should I Use?

Enrolment Form

Change Request Form

Notice of Change

Access to our Secure Website

To Contact Us

Exit

which form should i use
Which Form Should I Use?

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Forms and Noticeof Change

Two forms are available to you for the administration of payroll deduction:

  • the Enrolment Form
  • the Change Request Form

Which Form Should I Use?

Enrolment Form

Change Request Form

Notice of Change

Access to our Secure Website

To Contact Us

enrolment form
Enrolment Form

This form authorizes the Fund to open an account for an RRSP, a non-RRSP or a Spousal RRSP. It must be signed by the person who wishes to become a shareholder.

This form equally authorizes the Fund to ask the employer to begin the payroll deduction from one of his employee’s salary.

change request form
Change Request Form

This form enables employees who are already Fund shareholders to start, modify or terminate their payroll deductions.

This form also authorizes the Fund to ask the employer to begin, modify or stop the payroll deduction from one of his employee’s salary.

notice of change
Notice of Change
  • This report combines all information included in our Enrolment and Change Request Forms.
  • Depending on your payroll run date, you can choose to receive by mail, by fax or via our Secure Website, a Notice of Change that will allow you to update your employees’ payroll.
access to our secure website29
Access to Our Secure Website

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Forms and Noticeof Change

  • We can forward your Notices of Change via our Secure Website where you may consult them at your convenience.
  • We will advise you in due time of the availability of such notices.
  • If you are interested, please signup by email at remisedas@fondsftq.com or by fax at: (514) 383-2503.

Which Form Should I Use?

Enrolment Form

Change Request Form

Notice of Change

Access to our Secure Website

To Contact Us

to contact us
To Contact Us

Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

Forms and Noticeof Change

For more information concerning our Secure Website, our means of transmission of Remittance Notices and Remittance Lists, and the mailing of your monthly remittances to the Fund, do not hesitate to contact us by email at: remisedas@fondsftq.com or by fax at: (514) 383-2503and one of our advisors will get back to you promptly.

At all times, it is possible to contact the person in charge of your file by dialing the telephone number indicated on your Remittance Notice.

Which Form Should I Use?

Enrolment Form

Change Request Form

Notice of Change

Access to our Secure Website

To Contact Us