Frequently Asked Questions

A retiring allowance, as defined in subsection 248(1) of the Income Tax Act and part 1 of the Quebec Taxation Act, is an amount received upon or after retirement or termination from an office or employment in recognition of long service. This is often money paid at the discretion of the employer and not required by law. Sometimes this payment is referred to as a termination, lump-sum, or severance payment. The Canada Revenue Agency (CRA) IT Folio S2-F1-C2, Retiring Allowances provides additional technical interpretations.

The term "retiring allowance" does not necessarily mean that the individual is retiring and is used by the CRA and Revenu Québec (RQ) to describe a payment made to a terminating employee as compensation for loss of office or in recognition of past service.

Before a retiring allowance can qualify as such, the employer must establish the employee-employer relationship has been severed. If the terminated employee is still expected to perform services for the former employer, or is still accruing benefits in the company’s pension plan, an employee-employer relationship is still deemed to exist and the payment would not qualify as a retiring allowance.

Regular employment income, such as bonuses, commission payments, accumulated overtime, legislated pay in lieu of notice and vacation pay, do not qualify as a retiring allowance. However, accumulated sick leave credits paid out on termination, damages awarded to a former employee in a wrongful dismissal case and severance pay required under Ontario’s Employment Standards Act, 2000, and the Canada Labour Code, Part III, or a gratuitous severance pay in any jurisdiction, qualify as a retiring allowance. Amounts over and above the legislated minimum lieu of notice periods may qualify as a retiring allowance provided the employee-employer relationship has, in fact, been severed.

As retiring allowances are usually paid at the discretion of the employer, the amount will vary for each employee. The method of payment can vary as well. For example, some employers will pay the retiring allowance as a lump-sum payment on termination, whereas others will choose to spread this payment over a number of months, or even a number of years.

Payments that qualify as a retiring allowance are taxable using the lump-sum tax rates and are not subject to Canada/Quebec Pension Plan contributions, Employment Insurance (EI) premiums, or Quebec Parental Insurance Plan (QPIP) premiums.

Revenu Québec (RQ) and the Canada Revenue Agency (CRA) have different requirements regarding health spending accounts.

Since RQ considers health insurance plans to be a taxable benefit, it does not make an exception when it comes to the health spending account. To determine the value of the taxable benefit throughout the year, the following calculation must be performed:

[(A x B) /C] + [D x E) / F]

Where:

A: The total of all benefit reimbursements paid to all employees who have the same type of coverage (e.g. single or family)

B: Number of days during the year the employee has coverage under the plan

C: The total number of employee coverage days for all employees (total of column B)

D: Total of all administrative or management fees paid to a third party

E: Number of days during the year the employee has coverage under the plan

F: The total number of employee coverage days for all employees (total of column E)

At the end of the year, the employer will have to adjust the value of the taxable benefit based on the real amounts that were used by the group of employees covered under the same plan if estimations were initially used.

The taxable benefit is subject to QPP contributions and Quebec income tax and must be reported on the RL-1 in boxes A and J.

The CRA considers that if the majority of the reimbursement is for health expenses, it is not a taxable benefit and there is no T4 reporting requirement.

Information on how to apply for a SIN can be found on the Government of Canada’s Employment and Social Development website. The website will provide you with details on eligibility and the documentation you will need in order to apply for a SIN.

https://www.canada.ca/en/employment-social-development/services/sin.html

The Canadian Payroll Association does not store credit card info, memberships are not automatically renewed, so your card will not be charged.
 

Any courses with a minimum of 30 credit hours in payroll career-related topics like accounting, human resources, interpersonal skills or business communication completed through an accredited public college or university. These hours can be applied to both the current and following year’s annual CPE requirements.  In order for a course to be considered an eligible activity toward fulfilling the CPE requirement, the course must be successfully completed according to the college or university’s passing mark at which the course was completed.

For example, PCP certification holders who complete either the Introduction to Payroll Management or Applied Payroll Management courses in the Certified Payroll Manager (CPM) certification program satisfy both the current and following year's annual CPE requirements. This also includes the CPM transfer credit courses of Organizational Behaviour, Managerial Accounting, and Compensation and Benefits.

Yes. If you have less than one year of applicable payroll experience in your current or past position, you can combine positions to satisfy the one-year requirement. You must complete a separate application form for each payroll position being submitted for assessment.

If the organization does not have an official job description for the position you would like to submit for the Payroll Experience Prerequisite Application (PEPA) assessment, you must prepare a detailed job description yourself and submit it to your verifier for approval.

To paste your resume on the first Professional Profile page, ensure you are cutting and pasting actual formatted TEXT from an open word processor (i.e., Word) or text editor.

Simply open your resume file, choose Select All [Ctrl + A] from the Edit menu. Go to the Edit menu a second time, and select Copy [Ctrl + C]. Then go to your web browser and click into the resume text field. Go to the Edit menu once more and choose "Paste." [Ctrl + V] You should see your resume appear in the text field immediately.

Unfortunately, this is currently the only way to paste a whole file. JobConnect does not support cut-and-paste or drag-and-drop uploads (i.e., moving file items the way you would on your computer's desktop) at this time.

If this does not work as described, you may need to modify some simple settings on your web browser software to enable copy-and-paste support. If you are using MS Internet Explorer, the Copy and Paste features may have been disabled under the Security tab of your Internet Options screen (accessible under the Tools menu of the Internet browser). To re-enable Copy and Paste, navigate through the Internet Options dialog to the Security tab and ensure that Internet (the globe icon) is highlighted at the top of the window. Next, click the Custom Level button to display detailed options: at the fifth heading (Miscellaneous), the radio buttons at the third sub-heading serve to enable or disable (or selectively enable, with user prompts) your ability to copy and paste through web forms such as those on our site. The same option enables/disables drag-and-drop for sites that use this functionality.

If you have difficulty with the formatting of your resume on JobConnect, try saving it from your word processing software in one of the supported formats (plain text or HTML) before posting it. This should ensure it's more easily cut and pasted.

Note: If you have HTML code in your resume that's been generated by a "WYSIWYG" web editor, or an online page-builder site, you may find it conflicts with JobConnect. Try simplifying or use plain text and re-format it with our own in-page HTML editor (supported under MS Internet Explorer 4.0 and up only).

You can review and print copies of your invoices and receipts from your account toolbox.

Log in to your JobConnect account and click on the Invoice/Receipt History link near the bottom of the page. Indicate the date range appropriate to your purchase and click Submit. A list of all of the purchases you have made during the period selected will be displayed and available for printing or reviewing in either HTML or PDF format.

Transfer from Quebec to Ontario

Employees who transfer from Quebec, while working for the same employer under the same business entity, will require a reconciliation of QPP and CPP contributions. Employers must use the YTD QPP employee contributions when calculating any remaining CPP to be deducted.

The Canada Revenue Agency (CRA) has confirmed that Box 26 will be populated by pensionable earnings up to the YMPE, even if the employee has contributed at least $2,564.10 toward QPP before transferring outside of Quebec.

Example:

David earns an annual salary of $58,000 and is paid on a weekly basis. He earned $55,300 in Quebec and contributed $2,797.20 in QPP before transferring to Ontario. He then earned $1,115.38 in each of the two weeks left of the year as an Ontario employee. No CPP contributions are required since he has already contributed at least $2,797.20 in QPP. David’s Ontario T4 slip would be completed as follows:

• Box 16 of T4 = 0
• Box 26 = $0

 

QPP – EMPLOYEE TRANSFERING TO QUEBEC

For the 2017 tax reporting year if an employee is transferred to Quebec the employer must multiply the total CPP contributions withheld since the beginning of the year by a weighting factor to determine the maximum employee QPP contribution.

Payroll systems should have been programmed with the new weighting factor effective for the first pay period of 2017 to be ready in the event that an employee transfers from another jurisdiction to Quebec.

For the first pay period of 2017, the factor would be calculated as follows:

With a CPP contribution rate of 4.95%, the weighting factor would be 5.40 / 4.95 = 1.0909. (When the CPP and/or QPP contribution rate changes, the weighting factor would require a recalculation.)

Example:
Jacques earned $15,000 in Ontario and paid CPP contributions of $655.88 prior to moving to Quebec.

Jacques year to date contribution will be $655.88 x 1.0909 (Weighting Factor) = $715.50

Jacques will contribute $2,081.70 to QPP until he reaches a combined total of $2,797.20 between CPP and QPP.

An employee who has already contributed $2,564.10 in CPP contributions prior to moving to Quebec will not be required to contribute to the QPP as he attained the maximum for 2017.

Example:
Melanie earned $55,600 in Ontario and paid the maximum CPP contribution of $2,564.10 before moving to Quebec.

Melanie will not contribute to QPP as she reached the maximum yearly contribution for 2017.

An amount paid by the employer to acquire, on behalf of their employee, a share or fraction of a share issued by the Fonds de solidarité FTQ or by Fondaction is subject to income tax at source. This taxable benefit is not subject to QPP, EI (no EI if contributions locked-in. If not locked in, then EI is deducted), QPIP, nor the employer contribution to the health services fund (QHSF), the contribution related to the CNESST labour standards, the premium related to the CNESST Health and Safety, nor the contribution to the Workforce Skills Development and Recognition Fund (WSDRF).  The amount of the benefit must be reported on the RL-1 in boxes A, L and in code G-1 (but not in box G), and on the T4 in boxes 14, 26, and code 40.

1. Use your CPA user number and password to login to the Member Centre at payroll.ca
2. Scroll down to 'Grade Report', and click 'View'
3. Choose the Grade Report of the completed course you wish to view (note: only completed courses since January 1, 2017 will appear)
4. Print your Grade Report by selecting the PDF icon in the top left corner and printing the downloaded file

A T2202 is a tax form that allows students registered in a qualifying educational program to claim eligible tuition fees and textbook amounts where applicable. This will be replacing the T2202A form.

Upon completion of the PCP education and work experience requirements, if you have an active membership with the Canadian Payroll Association, you will automatically become PCP certified.  Once your annual Candidate Membership expires, you will be required to renew as either a Professional Member or get added on to the roster of your company’s Organizational membership as you will no longer be eligible for candidate membership.
 

For confidentiality reason you are required to enter your SIN directly by clicking on the following link, https://members.payroll.ca/EN/CPAKentico/Profile/TaxReceipts.aspx.

Complete the SIN form only if you entered the wrong SIN.

If you are in payroll or in accounting or HR with payroll-related responsibilities, you should be a member of the CPA to stay up to date and compliant, through an individual membership or your organization's membership. Any employer that processes a Canadian payroll can benefit from becoming an Organization member. Learn more about the CPA and who should be a member.

Yes. Your payroll experience must be obtained within 5 years before or 5 years after the start of the Payroll Compliance Legislation course if you are taking courses online or through continuing education. For students taking the PCP courses through a full-time program at a recognized college, university or private career college, the PCP Work Experience requirement timeline begins when you complete the Payroll Fundamentals 2 course.

The weighting of the payroll work experience requirement is determined by the number of hours per week spent completing payroll-oriented tasks. Using the standard 35-hour work week, the number of months spent completing qualifying work experience can be calculated. For example, if you spend 50% of your time (17.5 hours per week) on payroll-oriented tasks and have held the position for 24 months, you would be granted a total of 12 months (17.5 / 35 * 24 = 12). Only a full completed month of experience will be counted (no fractions, decimals or rounding).

If payroll is only one of your functions, you may require more than 2 years in the position to meet the requirement.

This problem most often originates in the settings of your web browser or your Internet connection. Try adjusting the Internet Options of your MS Internet Explorer web browser. (This problem does not typically affect Netscape/Firefox users). There are two separate adjustments that can be made, the first of which should correct the problem. If not, attempt the second and try again.

1. Open your browser's Advanced options. (Click the Tools menu and select Internet Options. Click the Advanced tab.)

Find the heading marked HTTP 1.1 Settings, and ensure that HTTP 1.1 protocol is ENABLED (checked) for use with Proxy Servers. (Both items under this heading should be checked.)

While on the Advanced page, make sure the Friendly HTTP Errors and Friendly URL's settings are DISABLED (unchecked). These can unhide additional information helpful in diagnosis and troubleshooting.

Make these adjustments and try to connect again. If this fails to correct the problem, try the second adjustment below.

2. If it is permitted by your administrator, you can bypass proxy servers entirely. This is controlled from the Connections section of the Internet Options screen. (Look under Connections, LAN Settings.) You may wish to contact your Internet service provider or network administrator first to find out if your connection will still work properly with proxies bypassed.

If neither of these steps rectify the situation, you will need to speak with your Internet service provider or network administrator about other network factors outside of our control.

If you need detailed assistance with locating the options noted above or making the adjustments described, contact us. You will need to know your web browser type and version number so we can provide specific instructions for your system.