Employers Interactive Administrative Guide IAG Regarding Payroll Deduction

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Employers Interactive Administrative Guide (IAG)
Regarding Payroll Deduction
Revised November 2003
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Employers Interactive Administrative Guide (IAG)
Regarding Payroll Deduction
Solidarity Fund QFL
Tax Breaks
Forms and Noticeof Change
Monthly Remittances
Exit
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Employers Interactive Administrative Guide (IAG)
Regarding Payroll Deduction
Solidarity Fund QFL
Tax Breaks
Forms and Noticeof Change
Monthly Remittances
About Us
Our mission
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About Us
Employers 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.
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Our Mission
Employers 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.
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Employers Interactive Administrative Guide (IAG)
Regarding Payroll Deduction
Solidarity Fund QFL
Tax Breaks
Forms and Noticeof Change
Monthly Remittances
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
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Making Remittances to the Fund
Employers 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
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Your Reference Number
Employers 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
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Notice to Employers
Employers 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
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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.
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Detailed Remittance List and Remittance List
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.
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Detailed Remittance List and Remittance List
Certain employers receive the Remittance List.
These employers must fill out this form and
return it to the Fund with the Remittance Notice
tear off portion.
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Access to Our Secure Website
Employers 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_at_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
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Terms of Remittance
Employers 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 employees 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 Funds
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
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Payment Procedure
Employers 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
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Payroll Processing ServicesProviders
Employers 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
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Employers Interactive Administrative Guide (IAG)
Regarding Payroll Deduction
Solidarity Fund QFL
Tax Breaks
Forms and Noticeof Change
Monthly Remittances
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
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Tax Benefits of Fund Shares
Employers 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
Funds 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
Payroll Processing Services Providers
Reference Documents
Example of Payroll Calculations with Payroll
Deduction
Example of Payroll Calculations with Payroll
Deduction and Employer Contribution
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Government Authorizations
Employers 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
Payroll Processing Services Providers
Reference Documents
Example of Payroll Calculations with Payroll
Deduction
Example of Payroll Calculations with Payroll
Deduction and Employer Contribution
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Payroll Processing Services Providers
Employers Interactive Administrative Guide (IAG)
Regarding Payroll Deduction
Tax Breaks
Most companies that offer payroll processing
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
Payroll Processing Services Providers
Reference Documents
Example of Payroll Calculations with Payroll
Deduction
Example of Payroll Calculations with Payroll
Deduction and Employer Contribution
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Reference Documents
Employers 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_win
ras/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/ta
x/business/tod/menu-e.html
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
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Example of Payroll Calculations with Payroll
Deduction
Revenu Québec Revenu Canada
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 employees 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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Example of Payroll Calculations with Payroll
Deduction and Employer Contribution

• T4 slip and Relevé 1 Any financial contribution
  paid by the employer is taxable and must be added
  to the employees 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 employees 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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Employers Interactive Administrative Guide (IAG)
Regarding Payroll Deduction
Solidarity Fund QFL
Tax Breaks
Forms and Noticeof Change
Monthly Remittances
Which Form Should I Use?
Enrolment Form
Change Request Form
Notice of Change
Access to our Secure Website
To Contact Us
Exit
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Which Form Should I Use?
Employers 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
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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 employees salary.
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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
employees salary.
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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.

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Access to Our Secure Website
Employers 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 sign up by email at
  remisedas_at_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
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To Contact Us
Employers 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_at_fondsftq.com or by fax at (514)
383-2503 and 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