• General information - Source deductions of Québec ...
• Calculation Method
• Taxable benefits
• Vacation pay
• Bonuses and retroactive pay
• Overtime pay
• Tips
• Director's fees
• Commissions
• Single payments
• Retiring allowance
• Death benefit
• Pension payments
• Payments from an RESP
• Payments from an RRSP or a RRIF
• Earnings supplements

Payments from an RRSP or a RRIF

If you make a payment from an RRSP or a RRIF, the payment is not subject to an income tax withholding, unless it is a single payment from an RRSP or the portion of a payment from a RRIF that exceeds the minimum amount.

RRSPs

If you make periodic payments from an RRSP, the payments are not subject to an income tax withholding. However, if you make a single payment from an RRSP, it is subject to an income tax withholding of 16% of the amount. For example,

• if you pay a monthly benefit of $1,000, do not withhold income tax on the benefit;
• if you make a single payment of $6,000, you must withhold $960 in income tax on the payment.

You must also withhold 16% income tax from a single payment made under a modified RRSP (plan that ceased to be registered as an RRSP before May 26, 1976).

Exception

As a rule, single payments from an RRSP are not subject to income tax withholdings if the amounts are transferred directly to another registered plan without being paid to the beneficiary. If only a portion of the payment is transferred directly to another plan, you must withhold income tax from the portion that is not transferred directly.

The following amounts from RRSPs are also not subject to income tax withholdings:

• amounts withdrawn from an RRSP under the Home Buyer's Plan (HBP), to a maximum of $20,000;
• amounts withdrawn from an RRSP under the Lifelong Learning Plan (LLP), to a maximum of $10,000 per year and $20,000 for the LLP participation period;
• amounts you can reasonably consider to be a refund received for undeducted contributions previously made to an RRSP that the beneficiary may deduct in his or her income tax return for the year.

RRIFs

You must withhold income tax from the portion of a payment from a RRIF that exceeds the minimum amount. In the case of a periodic payment,

• use the Source Deduction Table for Québec Income Tax (TP-1015.TI-V) to determine the withholding. If the table does not cover the amount of the payment and the number of your pay periods, follow the instructions given in section 5.4.4 of the Guide for Employers: Source Deductions and Contributions, or
• use the mathematical formulas.

In the case of a single payment, you must make a tax withholding of 16% on the portion of the payment that exceeds the minimum amount.

Exception

The portion of the payment from a RRIF that represents the minimum amount is not subject to income tax withholdings. This is true regardless of whether you make a periodic payment or a single payment.

As a rule, single payments from a RRIF are not subject to income tax withholdings if the amounts are transferred directly to another registered plan without being paid to the beneficiary. If only a portion of the payment is transferred directly to another plan, you must withhold income tax from the portion that is not transferred directly.