There is no requirement by Revenu Québec (RQ) to separate the eligible and non-eligible portion of the retiring allowance on the RL-1 slip. The total amount of the retiring allowance is reported on the RL-1 slip in box O (code RJ).
The Canada Revenue Agency (CRA) requires the reporting of eligible and non-eligible retiring allowances separately on the T4 slip.
For employees who receive a retiring allowance upon or after termination who have years of service prior to 1996, the employer is required to calculate the eligible portion of the retiring allowance. The eligible amount is determined by using the following calculation:
- $2,000 for each year, or part year, prior to 1996
- $1,500 for each year or part year prior to 1989 that employee was not vested in a pension plan or DPSP.
The eligible portion is reported in code 66 of the T4 slip and the non-eligible portion is reported in code 67.