General Business Information

Canada Customs & Revenue Agency 875 Heron Road Ottawa, Canada, K1A 1B1

RE: Statement of Account for Current Source Deductions

Dear Sirs:

We do not have the Statement of Account for Current Source Deductions for EI remittances. Your office has advised us to mail this letter with our cheque of $66.70 with the our information for the month of January, 2008. My business identification information is provided as follows:

Name:
Operating or Trade Name:
Revenue Canada Business Number:
Business Address:
Telephone Number:

EI Premiums	Tax Deductions	Current Payment	Gross Monthly Payroll
$66.70	0	$66.70	$2,000.00

Please send the form to us for our January, 2008 remittance.

Yours truly,
(your signature)

How to Calculate EI Deductions

Revenue Canada’s EI rate for 2008 is 1.39%. The rate changes on January 1 every year. You withhold a portion of your employee’s salary plus you contribute 1.4 times that amount to arrive at the total to be remitted to Revenue Canada for one employee per week.

Formula for EI calculation is:
EI = (gross salary x 1.39%) + (1.39% x 1.4) = employer’s remittance to Revenue Canada

We’ll calculate this based on a salary amount of $400.00 per week, as follows:
EI = ($400 x 1.39% or $400 x .0139% = $5.56) + (5.56 x 1.4 = $7.78)
EI = ($5.56) + ($7.78) = $13.34 is the total weekly employer’s remittance to Revenue Canada which is the employee’s portion plus the employer’s portion, for one employee.

$5.56 is the employee’s weekly EI contribution, which you should withhold from his gross salary. Therefore, his net salary after you deduct his EI contribution would be ($400 - $5.56 = $394.44).

$7.78 is the employer’s weekly contribution to Revenue Canada that you must contribute from your own pocket ($5.56 x 1.4 = $7.78).

The total of the two amounts is what you submit to Revenue Canada so that your employee will be eligible to collect employment benefits if he is laid-off. If the month has four weeks, then the $13.34 is multiplied by four for a total of $53.36 per month per employee that you remit to Revenue Canada. If the month has five weeks, then multiply the $13.34 by five for a total of $66.70 per month per employee that you remit to Revenue Canada.

If you have more than one employee, then calculate each one individually based on their gross weekly salary and add up all the totals to submit to Revenue Canada. This information is what you put on the Statement of Account for Current Source Deductions form that Revenue Canada will send to you every month. This can be paid at the Caisse Populaire. EI contribution is a mandatory cost and included in the law as protection for your employees. However, a ruling under Federal legislation does not allow a self-employed business owner to contribute to EI for themselves.

Submitting QPIP Contributions to Revenu Québec

Contact Revenu Québec at 514-873-4692 to register your business for source deductions. They will give you a numero d’entreprise du Québec (NEQ) and a Remittance of Source Deductions and Employer Contributions form to record the monthly deductions. The QPIP is remitted to the Québec government and can be paid at the Caisse. QPIP provides your employees with benefits for maternity, paternity, parental and adoption.

Calculating QPIP Deductions

Revenu Québec’s rate for 2008 is 0.45%. This rate may change every year. You withhold 0.45% of your employee’s salary plus you contribute 0.630% times your employee’s salary from your own pocket to arrive at the total to be remitted to Revenu Québec. The formula for QPIP calculation is:

QPIP = (gross salary x 0.45%) + (gross salary x 0.630%) = remittance to Revenu Québec

We’ll calculate this based on a salary amount of $400 per week.

QPIP = ($400 x 0.45% or $400 x .0045% = $1.80) + ($400 x .00630% = $2.52)
QPIP = $1.80 + $2.52 = $4.32
QPIP = $4.32 is the total weekly employer’s remittance to Revenu Québec

$1.80 is the employee’s weekly QPIP contribution, which you should withhold from the gross salary. Therefore, net salary would be $398.20 per week (note that EI is also deducted from this salary, which further decreases the net salary).

$2.52 is the employer’s weekly contribution that you must contribute from your own funds and add to the employee’s amount then remit to Revenu Québec. If the month has four weeks then the $4.32 is multiplied by four for a total of $17.28; if the month has five weeks then the $4.32 is multiplied by five for a total of $21.60.

If you have more than one employee, then calculate each one individually based on their gross weekly salary and add up the totals to submit to Revenue Québec. This can be paid at the Caisse Populaire. QPIP contributions are a mandatory cost and included in the law as protection for your employees. Self-employed business owners are eligible to contribute into the QPIP for themselves. You will find more information on this at http://www.rqap.gouv.qc.ca/ or you can call toll free at 1-888-610-7727.

T4 and T4 Summary to Revenue Canada and RL-1 Summary and Relevé 1 to Revenu Québec

Annual submissions of T4’s and a T4-Summary to Revenue Canada, and an RL-1 Summary and Relevé 1 to Revenu Québec for all your employees are required. Your employees will need the T4 and Relevé 1 to complete their income tax returns. The deadline date to complete and mail these forms to your employees and the government is February 27 every year.

The T4 is for Revenue Canada 1-800-959-5525 http://www.ccra.gc.ca/ and reports the total wages earned for the year, total EI deductions, total taxes paid (if applicable) and other deductions withheld from your employee’s salary. One T4 and Relevé 1 per employee is required. The T4 Summary and RL-1 Summary contain the total of all of the deductions you withheld from your employees’ salaries for the year.

Labor Standards in Québec (Commission des normes du travail)

This Commission informs the Québec population on matters dealing with labor standards, supervises the application of labor standards, receives complaints from employees, transmits recommendations to the Minister of Labor, and endeavors to bring about agreement between employers and employees.

They can be reached at the Regional offices of the Commission des normes du travail, 26th floor, 500 Rene-Levesque Blvd. West, Montreal, Qc, H2Z 2A5, 514- 873-7061. They have a publication available detailing the minimum conditions of employment for all Québec employees.

ROE – Record of Employment

When an employee has quit, was laid-off or employment was terminated, and has had or is anticipated to have seven consecutive calendar days without both work and insurable earnings from the employer, then by law, a Record of Employment must be filled out for the employee. The employee requires this report in order to apply for employment insurance benefits.

To order these forms, call Service Canada, 2501 boul. Lapiniere, Brossard, Québec J4Z 3P1 at 450-445-0411 or 1-800-550-9004. It takes about ten working days to receive it by mail. The report has three copies, one is for your employee, one you keep in the files and one you mail to Revenue Canada’s Bathurst, New Brunswick office. Instructions on completing the report and the mailing address are contained in the report. A penalty may apply to employers who fail to issue an ROE to their employees.

To Qualify for Employment Insurance (EI) Benefits

Here is information your employees may need to apply for employment insurance benefits. A first-time claimant must work a minimum of 910 hours to be eligible to receive employment benefits. For a second application claim, 560 hours are needed, which is about 16 weeks at 35 hours per week. Applications for EI Benefits could either be completed on-line at http://www.canada.gc.ca/ or made in person. The address of the Châteauguay office is 245 St. Jean Baptiste boul., room 101, Châteauguay, Québec, J6K 3V3, 1-800-550-9004 and fax 450-691-4247. They should apply for benefits no later than four weeks from the last day worked otherwise they will experience delays in the processing of their claim and delays in receiving the benefits. Service Canada’s Employment Insurance information service number is 1-800-206-7218.

To Apply for Employment Insurance (EI) Benefits

The applicant will need:

Their Record of Employment (ROE) that they obtain from you, the employer
Their Social Insurance Number
Picture proof of their identity
The address of their bank and a void cheque for automatic deposit

Mohawk Self-Insurance (MSI)

MSI is workplace insurance for your employees which covers on-reserve, on-the-job bodily injury only. Each business must contact MSI to obtain premium costs for the particular occupation of their employees. These premium costs are paid for by the employer. Non-Native employees are eligible for this insurance if they work on the Territory of Kahnawake. Flexible payment plans are available. Contact the Mohawk Council of Kahnawake at 450-638-0500 to register your employees or for more information.