RL-1 Slip – Employment and Other Income

RL-1 Slip – Employment and Other Income

The RL-1 slip must be filed by

any employer or payer that paid salaries, wages, gratuities, tips, fees, scholarships or commissions in the year;

any custodian of an employee benefit plan that paid amounts to a beneficiary of the plan in the year;

any trustee of an employee trust that allocated amounts to a beneficiary of the trust in the year;

any payer that paid certain income that is not a salary or wages.

amounts deducted at source from the above-mentioned types of remuneration

Who is required to file an RL-1 slip?

You are required to file an RL-1 slip if, in the year, you:

paid salaries, wages, gratuities, tips, fees, scholarships or commissions as an employer or payer;

paid amounts as the custodian of an employee benefit plan to a beneficiary of the plan;

allocated amounts as the trustee of an employee trust to a beneficiary of the trust;

paid certain income that is not a salary or wages as a payer.

How to Complete the RL-1 Slip (Box by Box Instructions)

BOX A

Enter in box A of the RL-1 slip (see courtesy translation RL-1-T) the salary or wages and any other remuneration (including bonuses) paid to an employee for an office or employment, except the portion of such income included in Box R that constitutes employment income situated on a reserve or premises. The amounts entered in box A must be calculated before source deductions.

You must enter the amounts in box A of the RL-1 slip for the year in which they are paid. For example, if you pay an amount on January 2, 2024, for the pay period covering December 22, 2023, to January 2, 2024, enter this amount in box A of the employee's RL-1 slip for 2024, not on the slip for 2023.

BOX B

Enter in box B of an employee's RL-1 slip (see courtesy translation RL-1-T) the total Québec Pension Plan (QPP) contributions withheld (base contribution and first additional contribution), including amounts withheld:

from the employment income subject to QPP contributions that was paid for a period in which the employee did not perform their employment duties, that was repaid by the employee in the year;

from employment income subject to QPP contributions that was paid by mistake, except if the employee repaid an amount equal to the net income;

by a person with whom you are not dealing at arm's length who paid employment income to your employee;

by amalgamated corporations and by the corporation resulting from the amalgamation;

by a parent corporation and a wound-up subsidiary, if at least 90% of the subsidiary's property was attributed to the parent corporation.

BOX C

Enter in box C of the RL-1 slip the total Employment Insurance premiums withheld. Leave the box blank if no amount was withheld.

BOX D

Enter in box D of the RL-1 slip (see courtesy translation RL-1-T) the total of the following amounts:

the registered pension plan (RPP) contributions withheld for current and past service;

any interest considered to be a contribution to an RPP (interest paid to offset the actuarial loss sustained when past service contributions are paid in instalments or interest paid as carrying charges with respect to the instalments);

the amounts withheld under a retirement compensation arrangement.

BOX E

Enter in box E of the RL-1 slip the total Québec income tax withheld, including income tax withheld:

from the employment income paid for a period in which the employee did not perform their employment duties that was repaid by the employee in the year;

from employment income paid by mistake, except if the employee repaid an amount equal to the net income;

by a person with whom you are not dealing at arm's length who paid employment income to your employee and who does not have an establishment in Québec;

by amalgamated corporations and by the corporation resulting from the amalgamation;

by a parent corporation and a wound-up subsidiary, if at least 90% of the subsidiary's property was attributed to the parent corporation.

Leave the box blank if you did not withhold any Québec income tax. Do not include in box E the income tax withheld pursuant to an order to seize property in the hands of a third person or a formal demand for payment regarding income tax owing with respect to a previous year.

BOX F

Enter in box F of the RL-1 slip the total amounts you withheld as union dues if the following conditions are met:

The amounts were withheld under an agreement between you and the entity your employees are members of

The agreement provides that the entity must not issue any receipts for such amounts.

The entity with which you have an agreement is a union, an employee association recognized by us, a parity committee, an advisory committee or a similar group, or the Commission de la construction du Québec.

Do not include membership fees in box F.

BOX G

Enter in box G of the RL-1 slip (see courtesy translation RL-1-T) the pensionable salary or wages under the Québec Pension Plan (QPP) (maximum for 2023: $66,600). If there is no pensionable salary or wages under the QPP for the year, enter “0.”

BOX H

Enter in box H of an employee's RL-1 slip the total Québec parental insurance plan (QPIP) premiums withheld during the year, including amounts withheld:

from the employment income subject to QPIP premiums that was paid for a period in which the employee did not perform their employment duties, that was repaid by the employee in the year;

from employment income subject to QPIP premiums that was paid by mistake, except if the employee repaid an amount equal to the net income;

by a person with whom you are not dealing at arm's length who paid employment income to your employee;

by amalgamated corporations and by the corporation resulting from the amalgamation;

by a parent corporation and a wound-up subsidiary, if at least 90% of the subsidiary's property was attributed to the parent corporation.

Also enter in box H any employee QPIP premium that you paid that is included in box L. Do not correct the amount in box H if it is too high. Leave the box blank if you did not withhold QPIP premiums.

BOX I

Enter in box I of the RL-1 slip (see courtesy translation RL-1-T) the eligible salary or wages under the Québec parental insurance plan (QPIP) (maximum for 2023: $91,000). If there is no eligible salary or wages under the QPIP for the year, enter “0.” The amount of the eligible salary or wages under the QPIP generally corresponds to the amount of insurable earnings on which you withhold Employment Insurance premiums.

BOX J

Your contribution to a private health services plan, for the coverage that a current, former or future employee receives during the year, may constitute a taxable benefit. If this is the case, you must enter the value of the benefit in box J of the RL-1 slip

BOX K

Trips you pay for on behalf of an employee (or an eligible family member) who was a resident of a designated remote area may constitute a taxable benefit for the employee. If this is the case, you must enter the value of the benefit in box K of the RL-1 slip

BOX L

Enter in box L of the RL-1 slip (see courtesy translation RL-1-T) the value of all taxable benefits granted to an employee whose value must not be included in the following boxes:

Box J: Private health services plan

Box K: Trips (remote area)

Box P: Multi-employer insurance plans

Box V: Meals and lodging

Box W: Motor vehicle

If a taxable benefit is granted to an employee who is also a shareholder and the employee receives the benefit as a shareholder (rather than as an employee), see the section of RL-1 Slip – Box O pertaining to benefits received by a shareholder (code RO).

BOX M

Enter in box M of the RL-1 slip the total of the following amounts:

the gross amount of any commissions paid in connection with employment that are included in box A;

the gross amount of any commissions situated on a reserve or premises that are included in box R.

Commissions paid to a self-employed person must not be included in box M (such commissions must be reported in box O).

BOX N

Enter in box N of the RL-1 slip the total of any amounts withheld as donations and gifts and paid on behalf of the employee to a registered charity or other qualified donee.Special rules apply if the employee received a benefit from the donee because of the donation or gift.

BOX O

Use box O to report income that is not entered elsewhere on the RL-1 slip . For more information visit RL-1 SLIP – BOX O

BOX P

The contribution to a group insurance plan (other than insurance for total or partial loss of employment income) that you pay to the administrator of a multi-employer insurance plan may constitute a taxable benefit for a current, former or future employee. If it does, you must enter the value of the benefit in box P of the RL-1 slip

BOX Q

If you are an employer, enter in box Q of the RL-1 slip the total of the amounts you paid to a custodian or a trustee of an employee benefit plan, a profit‑sharing plan or an employee trust. These payments are not to be included in boxes A and L.

BOX R

If you are filing an RL‑1 slip for an Indian employee, enter in box R the total of the following amounts:

the gross employment income situated on a reserve or premises (such income must not be included in box A);

the retiring allowances included in box O (code RJ) related to employment income situated on a reserve or premises;

the benefits paid under a wage loss replacement plan included in box O (code RN) related to employment income situated on a reserve or premises.

The Indian employee can claim a deduction for this amount in their income tax return.

BOX S

If you are filing an RL‑1 slip for an employee who worked in the restaurant, bar or hotel sector, enter the total of the following amounts in box S:

the net tips the employee reported during the year (amount on line 5 in Part 2 of the Register and Statement of Tips [TP‑1019.4‑V] if they gave you this document);

the controlled tips (service charges added to the customer's bill) you distributed to the employee during the year.

BOX T

If you are filing an RL-1 slip for an employee who worked in the restaurant, bar or hotel sector, enter in box T the tips that you allocated during the year.

BOX U

Enter in box U of the RL-1 slip the deemed salary or wages paid under a phased retirement arrangement that has been approved by Retraite Québec.The amount entered in box U is used to calculate additional Québec Pension Plan (QPP) contributions.

BOX V

The allowance you pay to an employee for meals and lodging, and the meals, board and lodging you provide to the employee, may constitute a taxable benefit for them. If this is the case, you must enter the value of the benefit in box V of the RL-1 slip.

BOX W

The personal use of a motor vehicle that you make available to an employee (or to a person related to the employee) may constitute a taxable benefit for the employee. If this is the case, you must enter the value of the benefit in box W of the RL-1 slip.

BOX MARKED “CODE (CASE O)”

Where applicable, enter in the box marked “Code (case O)” the alphabetic code corresponding to the type of income reported in box O of the RL-1 slip (see courtesy translation RL-1-T). For information about the codes that must be entered in the box marked “Code (case O),” consult RL-1 Slip – Box O.

If more than one code applies to the amount in box O, enter “RZ” in the box marked “Code (case O).” For each type of income, enter the appropriate code in one of the blank boxes followed by the corresponding amount.

For further information please contact Taxtron Support at 416-491-0333 or visit www.taxtron.ca