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1
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PURPOSE
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1.1
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The purpose of this directive is to provide you with information concerning
deductions at source of Québec income tax for employees residing in the
province of Québec and working in a province other than
Québec.
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2
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BACKGROUND
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2.1
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Previously, only employees working and residing in the province of
Québec could choose to have an additional Québec income tax
deduction at source.
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2.2
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The Department of Finance Canada and Treasury Board Secretariat have recently
agreed to a request from the Ministère du Revenu du Québec, that
Québec resident employees, working outside the province of
Québec, be offered the option of having a Québec income tax
deduction at source.
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3
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POLICY
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3.1
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Employees residing in Québec and working in a province other than
Québec may now choose to have a predetermined amount of Québec
income tax deducted at source and remitted directly to the Ministère du
Revenu du Québec.
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3.2
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This deduction will be considered as an "additional" tax deduction to
what is currently being calculated at source on the employee's remuneration
payments. Please note that, in accordance with Regulation 102 (1) (a) of the
Income Tax Act, the employee's income tax will continue to be calculated on
these payments based on the employee's province of work.
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3.3
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Deduction code 799 "Québec Income Tax Additional Fixed
Amount", presently used to deduct Québec income tax for employees
residing and working in Québec, will also be utilized to deduct
Québec income tax for employees residing in Québec and working in
another province other than Québec.
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3.4
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Code 799 will be deducted from remuneration paid each pay period. Supplementary
payments (i.e. overtime payment) are exempt from this provision.
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3.5
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The amount to be deducted each pay period must be identified by the employee
and this amount must be a multiple of 5.
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3.6
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Treasury Board has requested that departments notify their employees of this
new option.
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4
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PROCEDURES/INSTRUCTIONS
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4.1
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The employee residing in Québec and working in a province other than
Québec who wishes to have a Québec income tax deduction at source
should send his/her request, in writing, to his/her personnel
office.
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The request may also be done by completing either the form TP-1017V
"Request to have additional tax withheld at source" or by completing
the pertinent section of form MR-19 "Source deductions return". Both
forms are available at any office of the Ministère du Revenu du
Québec.
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4.2
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Upon receipt of the written request from the employee, the Compensation
Specialist should commence the deduction code 799 for the amount requested by
the employee.
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4.3
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The total amount of Québec income tax deducted during the year will be
reported on a Relevé 1.
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4.4
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Pay offices will remit these deductions to the Ministère du Revenu du
Québec as per current procedures.
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5
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INQUIRIES
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5.1
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Any request for information regarding the foregoing should be addressed to your
PWGCS Client Services Centre as per Compensation Directive 1994-039 dated
October 6, 1994.
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P. Charko
Director General
Compensation Sector
Government Operational Service
[Print Version]