R-5 - Act respecting the Régie de l’assurance maladie du Québec

Section 34 Disposition versions

2024-05-07

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of the wages that the employer pays to the employer’s employee who reports for work at the employer’s establishment in Québec, that the employer is deemed to pay to the employee or that the employer pays in respect of the employee, or to the employer’s employee to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid, deemed to be paid or paid in respect of the employee from such an establishment in Québec.

The percentage to be applied to wages referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages (other than an eligible specified employer for that year) and the employer’s total payroll for that year is equal to or less than $1,000,000,

(1)  2.5% for the year 2017,

(2)  2.3% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 1.95% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 1.75% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019,

(3)  1.7% for the year 2019, or

(4)  1.65% for a year subsequent to the year 2019,

(5)  (subparagraph repealed);

i.1.  where the employer is an eligible specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is equal to or less than $1,000,000,

(1)  1.55% for the year 2017,

(2)  1.5% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 1.45% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 1.25% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019, or

(3)  1.25% for a year subsequent to the year 2018, 

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages (other than an eligible specified employer for that year) and the employer’s total payroll for that year is more than $1,000,000 but less than the employer’s total payroll threshold for the year, the percentage determined by the formula 

A + (B × C)

ii.1.  where the employer is an eligible specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is more than $1,000,000 but less than the employer’s total payroll threshold for the year, the percentage determined by the formula

D + (E × C)

iii.  in any other case, 4.26%; and

(b)  in the case of wages paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formulas in subparagraphs ii and ii.1 of subparagraph a of the second paragraph,

(a)  A is

i.  2.06% for the year 2017,

ii.  1.8644% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 1.4367% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 1.1922% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019,

iii.  1.188% for the year 2019, or

iv.  for a year subsequent to the year 2019, the percentage that corresponds to the amount by which 1.65% exceeds the quotient obtained by dividing 2.61% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000;

v.  (subparagraph repealed);

(b)  B is

i.  0.44% for the year 2017,

ii.  0.4356% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 0.5133% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 0.5578% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019,

iii.  0.512% for the year 2019, or

iv.  for a year subsequent to the year 2019, the percentage that corresponds to the quotient obtained by dividing 2.61% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000; 

v.  (subparagraph repealed);

(c)  C is the quotient obtained by dividing the employer’s total payroll for the year by $1,000,000;

(d)  D is

i.  0.8725% for the year 2017,

ii.  0.8867% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 0.8256% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 0.5811% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019, or

iii.  for a year subsequent to the year 2018, the percentage that corresponds to the amount by which 1.25% exceeds the quotient obtained by dividing 3.01% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000; and

(e)  E is

i.  0.6775% for the year 2017,

ii.  0.6133% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 0.6244% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 0.6689% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019, or

iii.  for a year subsequent to the year 2018, the percentage that corresponds to the quotient obtained by dividing 3.01% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000. 

If the percentage determined by the formulas in subparagraphs ii and ii.1 of subparagraph a of the second paragraph has more than two decimal places, only the first two decimal digits are retained and the second is increased by one unit if the third is greater than 4. In addition, if the percentage determined in accordance with subparagraph iv of subparagraph a or b of the third paragraph or with subparagraph iii of subparagraph d or e of the third paragraph has more than four decimal places, only the first four decimal digits are retained and the fourth is increased by one unit if the fifth is greater than 4.

However, where the employer is an eligible employer at the time the wages are paid or deemed to be paid, where that time is included in the employer’s exemption period and where the wages are not wages that would not be wages because of paragraph a of the definition of “wages” in the first paragraph of section 33 if section 64 of the Act respecting international financial centres (chapter C-8.3) were read as if “75%” in the first paragraph was replaced by “100%” and were read without reference to its second paragraph, no contribution is payable under this section in respect of 75% of the portion of the wages that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages paid or deemed to be paid at that time by the employer, and each of which is wages in respect of which, in a proportion of 75%, no contribution is payable under this section by reason of this paragraph.

In addition, no contribution is payable under this section

(a)  in respect of the wages paid or deemed to be paid by an employer if, at the time the wages are paid or deemed to be paid, the employer is an exempt employer other than an employer described in subparagraph i of subparagraph a.1 and if that time is included in the employer’s eligibility period;

(a.1)  in respect of 3/4 of the wages paid or deemed to be paid by an employer if

i.  at the time of payment or deemed payment of the wages, the employer is an exempt employer referred to in subparagraph iii of paragraph a of section 771.12 of the Taxation Act in respect of whom any of the conditions mentioned in subparagraphs 1 and 2 of subparagraph i of subparagraph b of the second paragraph of section 771.8.5 of that Act is met, and

ii.  the time of payment or deemed payment of the wages is included in the employer’s eligibility period;

(b)  in respect of the wages paid or deemed to be paid by an employer that carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  in respect of the wages paid or deemed to be paid by an employer that carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)  (subparagraph repealed);

(d.1)  if an employer carries out, in a taxation year or fiscal period, a large investment project and encloses the prescribed form containing prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (chapter R-5, r. 1) that the employer is required to file for the year that includes, at least in part, the taxation year or fiscal period,

i.  except where subparagraph ii applies and subject to section 34.1.0.3, in respect of the wages that are paid or deemed to be paid to an employee in respect of the part of the employee’s working time devoted exclusively to eligible activities of the employer, in relation to the large investment project, other than construction, expansion or modernization activities in respect of an immovable where that project will be carried out, and that are paid or deemed to be paid for a pay period comprised in a tax-free period of the employer, for the taxation year or fiscal period, as the case may be, in relation to the project, or

ii.  subject to section 34.1.0.3.1, in respect of the wages paid or deemed to be paid to an employee for a pay period comprised in a tax-free period of the employer, for the taxation year or fiscal period, as the case may be, in relation to the large investment project, to the extent that they are not in respect of the part of the employee’s working time devoted to construction, expansion or modernization activities in respect of an immovable where that project will be carried out, if the certificate that was issued for the taxation year or fiscal period, in relation to the project, certifies that the employer elected to use the alternate computation method provided for in section 34.1.0.3.1;

(d.2)  subject to section 34.1.0.5, in respect of the wages paid or deemed to be paid by an employer that is a qualified corporation or a qualified partnership, in relation to a large investment project of the employer, if the wages are paid or deemed to be paid to an employee for a pay period comprised in a tax-free period of the employer, for a taxation year or fiscal period, as the case may be, in relation to the project, to the extent that they are not referred to in subparagraph d.1 and are not in respect of the part of the employee’s working time devoted to construction, expansion or modernization activities in respect of an immovable where that project will be carried out and if the employer encloses the prescribed form containing prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year that includes, at least in part, the taxation year or fiscal period; and

(e)  (subparagraph repealed);

(f)  in respect of the wages paid or deemed to be paid by an employer that is an international governmental organization whose head office is situated in Québec, unless the organization consents to pay a contribution in respect of those wages.

For the purposes of subparagraphs b and c of the sixth paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraphs d.1 and d.2 of the sixth paragraph, the following rules must, where applicable, be taken into consideration:

(a)  the wages paid or deemed to be paid to an employee by an employer do not include directors’ fees, premiums, incentive bonuses, commissions or benefits referred to in Division II of Chapter II of Title II of Book III of Part I of the Taxation Act;

(b)  where a pay period is not wholly comprised in a tax-free period of the employer, in relation to the large investment project, only the part of the period in respect of which the wages relate that is comprised in the tax-free period must be taken into account; and

(c)  the wages paid or deemed to be paid to an employee in respect of the part of the employee’s working time devoted to eligible activities of an employer referred to in subparagraph i of that subparagraph d.1, in relation to a deemed large investment project of the employer within the meaning of the seventh paragraph of section 33, for a pay period that ends after the last day of the tax-free period in respect of the first large investment project (in this section referred to as the “particular day”) is deemed to be equal to either

i.  where the pay period includes the particular day, the amount determined by the formula

A − {B × [C / (C + D)]}, or

ii.  in any other case, the amount determined by the formula

A × [D / (C + D)].

In the formulas in the eighth paragraph,

(a)  A is the wages paid or deemed to be paid to the employee in respect of the part of the employee’s working time devoted to eligible activities of the employer referred to in subparagraph d.1 of the sixth paragraph, in relation to the deemed large investment project, for the pay period, that is otherwise determined;

(b)  B is the wages paid or deemed to be paid to the employee in respect of the part of the employee’s working time devoted to eligible activities of the employer referred to in subparagraph d.1 of the sixth paragraph, in relation to the deemed large investment project, which relates to the part of the pay period that begins after the particular day and that is otherwise determined;

(c)  C is the total qualified capital investments of the employer, in relation to the first large investment project, on the date of the beginning of the tax-free period in respect of the project; and

(d)  D is the total qualified capital investments of the employer, in relation to the second large investment project, on the date of the beginning of the tax-free period in respect of the project.

However, the sixth paragraph does not apply in respect of wages paid or deemed to be paid by an excluded employer.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438; 2004, c. 21, s. 518; 2005, c. 1, s. 327; 2005, c. 23, s. 269; 2005, c. 38, s. 351; 2009, c. 5, s. 583; 2010, c. 25, s. 239; 2015, c. 21, s. 593; 2015, c. 24, s. 164; 2017, c . 1, s. 432; 2017, c. 29, s. 233; 2019, c. 14, s. 521; 2022, c. 23, s. 167; 2024, c. 11, s. 146.

2022-06-08

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of the wages that the employer pays to the employer’s employee who reports for work at the employer’s establishment in Québec, that the employer is deemed to pay to the employee or that the employer pays in respect of the employee, or to the employer’s employee to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid, deemed to be paid or paid in respect of the employee from such an establishment in Québec.

The percentage to be applied to wages referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages (other than an eligible specified employer for that year) and the employer’s total payroll for that year is equal to or less than $1,000,000,

(1)  2.5% for the year 2017,

(2)  2.3% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 1.95% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 1.75% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019,

(3)  1.7% for the year 2019, or

(4)  1.65% for a year subsequent to the year 2019,

(5)  (subparagraph repealed);

i.1.  where the employer is an eligible specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is equal to or less than $1,000,000,

(1)  1.55% for the year 2017,

(2)  1.5% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 1.45% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 1.25% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019, or

(3)  1.25% for a year subsequent to the year 2018, 

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages (other than an eligible specified employer for that year) and the employer’s total payroll for that year is more than $1,000,000 but less than the employer’s total payroll threshold for the year, the percentage determined by the formula 

A + (B × C)

ii.1.  where the employer is an eligible specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is more than $1,000,000 but less than the employer’s total payroll threshold for the year, the percentage determined by the formula

D + (E × C)

iii.  in any other case, 4.26%; and

(b)  in the case of wages paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formulas in subparagraphs ii and ii.1 of subparagraph a of the second paragraph,

(a)  A is

i.  2.06% for the year 2017,

ii.  1.8644% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 1.4367% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 1.1922% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019,

iii.  1.188% for the year 2019, or

iv.  for a year subsequent to the year 2019, the percentage that corresponds to the amount by which 1.65% exceeds the quotient obtained by dividing 2.61% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000;

v.  (subparagraph repealed);

(b)  B is

i.  0.44% for the year 2017,

ii.  0.4356% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 0.5133% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 0.5578% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019,

iii.  0.512% for the year 2019, or

iv.  for a year subsequent to the year 2019, the percentage that corresponds to the quotient obtained by dividing 2.61% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000; 

v.  (subparagraph repealed);

(c)  C is the quotient obtained by dividing the employer’s total payroll for the year by $1,000,000;

(d)  D is

i.  0.8725% for the year 2017,

ii.  0.8867% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 0.8256% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 0.5811% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019, or

iii.  for a year subsequent to the year 2018, the percentage that corresponds to the amount by which 1.25% exceeds the quotient obtained by dividing 3.01% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000; and

(e)  E is

i.  0.6775% for the year 2017,

ii.  0.6133% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 0.6244% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 0.6689% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019, or

iii.  for a year subsequent to the year 2018, the percentage that corresponds to the quotient obtained by dividing 3.01% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000. 

If the percentage determined by the formulas in subparagraphs ii and ii.1 of subparagraph a of the second paragraph has more than two decimal places, only the first two decimal digits are retained and the second is increased by one unit if the third is greater than 4. In addition, if the percentage determined in accordance with subparagraph iv of subparagraph a or b of the third paragraph or with subparagraph iii of subparagraph d or e of the third paragraph has more than four decimal places, only the first four decimal digits are retained and the fourth is increased by one unit if the fifth is greater than 4.

However, where the employer is an eligible employer at the time the wages are paid or deemed to be paid, where that time is included in the employer’s exemption period and where the wages are not wages that would not be wages because of paragraph a of the definition of “wages” in the first paragraph of section 33 if section 64 of the Act respecting international financial centres (chapter C-8.3) were read as if “75%” in the first paragraph was replaced by “100%” and were read without reference to its second paragraph, no contribution is payable under this section in respect of 75% of the portion of the wages that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages paid or deemed to be paid at that time by the employer, and each of which is wages in respect of which, in a proportion of 75%, no contribution is payable under this section by reason of this paragraph.

In addition, no contribution is payable under this section

(a)  in respect of the wages paid or deemed to be paid by an employer if, at the time the wages are paid or deemed to be paid, the employer is an exempt employer other than an employer described in subparagraph i of subparagraph a.1 and if that time is included in the employer’s eligibility period;

(a.1)  in respect of 3/4 of the wages paid or deemed to be paid by an employer if

i.  at the time of payment or deemed payment of the wages, the employer is an exempt employer referred to in subparagraph iii of paragraph a of section 771.12 of the Taxation Act in respect of whom any of the conditions mentioned in subparagraphs 1 and 2 of subparagraph i of subparagraph b of the second paragraph of section 771.8.5 of that Act is met, and

ii.  the time of payment or deemed payment of the wages is included in the employer’s eligibility period;

(b)  in respect of the wages paid or deemed to be paid by an employer that carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  in respect of the wages paid or deemed to be paid by an employer that carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)  (subparagraph repealed);

(d.1)  subject to section 34.1.0.3, in respect of the wages paid or deemed to be paid by an employer, if the wages are paid or deemed to be paid to an employee in respect of the part of the employee’s working time devoted exclusively to eligible activities of the employer, in relation to a large investment project of the employer, other than construction, expansion or modernization activities in respect of an immovable where that project will be carried out, if the wages are paid or deemed to be paid for a pay period comprised in a tax-free period of the employer, for a taxation year or a fiscal period, in relation to the project, and if the employer encloses the prescribed form containing prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year;

(e)  (subparagraph repealed);

(f)  in respect of the wages paid or deemed to be paid by an employer that is an international governmental organization whose head office is situated in Québec, unless the organization consents to pay a contribution in respect of those wages.

For the purposes of subparagraphs b and c of the sixth paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraph d.1 of the sixth paragraph, the following rules must be taken into consideration:

(a)  the wages paid or deemed to be paid to an employee by an employer do not include directors’ fees, premiums, incentive bonuses, commissions or benefits referred to in Division II of Chapter II of Title II of Book III of Part I of the Taxation Act;

(b)  where a pay period is not wholly comprised in a tax-free period of the employer, in relation to the large investment project, only the part of the period in respect of which the wages relate that is comprised in the tax-free period must be taken into account; and

(c)  the wages paid or deemed to be paid to an employee in respect of the part of the employee’s working time devoted to eligible activities of an employer referred to in that subparagraph d.1, in relation to a deemed large investment project of the employer within the meaning of the seventh paragraph of section 33, for a pay period that ends after the last day of the tax-free period in respect of the first large investment project (in this section referred to as the “particular day”) is deemed to be equal to either

i.  where the pay period includes the particular day, the amount determined by the formula

A − {B × [C / (C + D)]}, or

ii.  in any other case, the amount determined by the formula

A × [D / (C + D)].

In the formulas in the eighth paragraph,

(a)  A is the wages paid or deemed to be paid to the employee in respect of the part of the employee’s working time devoted to eligible activities of the employer referred to in subparagraph d.1 of the sixth paragraph, in relation to the deemed large investment project, for the pay period, that is otherwise determined;

(b)  B is the wages paid or deemed to be paid to the employee in respect of the part of the employee’s working time devoted to eligible activities of the employer referred to in subparagraph d.1 of the sixth paragraph, in relation to the deemed large investment project, which relates to the part of the pay period that begins after the particular day and that is otherwise determined;

(c)  C is the total qualified capital investments of the employer, in relation to the first large investment project, on the date of the beginning of the tax-free period in respect of the project; and

(d)  D is the total qualified capital investments of the employer, in relation to the second large investment project, on the date of the beginning of the tax-free period in respect of the project.

However, the sixth paragraph does not apply in respect of wages paid or deemed to be paid by an excluded employer.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438; 2004, c. 21, s. 518; 2005, c. 1, s. 327; 2005, c. 23, s. 269; 2005, c. 38, s. 351; 2009, c. 5, s. 583; 2010, c. 25, s. 239; 2015, c. 21, s. 593; 2015, c. 24, s. 164; 2017, c . 1, s. 432; 2017, c. 29, s. 233; 2019, c. 14, s. 521; 2022, c. 23, s. 167.

2021-01-01

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of the wages that the employer pays to the employer’s employee who reports for work at the employer’s establishment in Québec, that the employer is deemed to pay to the employee or that the employer pays in respect of the employee, or to the employer’s employee to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid, deemed to be paid or paid in respect of the employee from such an establishment in Québec.

The percentage to be applied to wages referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages (other than an eligible specified employer for that year) and the employer’s total payroll for that year is equal to or less than $1,000,000,

(1)  2.5% for the year 2017,

(2)  2.3% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 1.95% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 1.75% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019,

(3)  1.7% for the year 2019, or

(4)  1.65% for a year subsequent to the year 2019,

(5)  (subparagraph repealed);

i.1.  where the employer is an eligible specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is equal to or less than $1,000,000,

(1)  1.55% for the year 2017,

(2)  1.5% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 1.45% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 1.25% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019, or

(3)  1.25% for a year subsequent to the year 2018, 

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages (other than an eligible specified employer for that year) and the employer’s total payroll for that year is more than $1,000,000 but less than the employer’s total payroll threshold for the year, the percentage determined by the formula 

A + (B × C)

ii.1.  where the employer is an eligible specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is more than $1,000,000 but less than the employer’s total payroll threshold for the year, the percentage determined by the formula

D + (E × C)

iii.  in any other case, 4.26%; and

(b)  in the case of wages paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formulas in subparagraphs ii and ii.1 of subparagraph a of the second paragraph,

(a)  A is

i.  2.06% for the year 2017,

ii.  1.8644% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 1.4367% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 1.1922% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019,

iii.  1.188% for the year 2019, or

iv.  for a year subsequent to the year 2019, the percentage that corresponds to the amount by which 1.65% exceeds the quotient obtained by dividing 2.61% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000;

v.  (subparagraph repealed);

(b)  B is

i.  0.44% for the year 2017,

ii.  0.4356% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 0.5133% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 0.5578% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019,

iii.  0.512% for the year 2019, or

iv.  for a year subsequent to the year 2019, the percentage that corresponds to the quotient obtained by dividing 2.61% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000; 

v.  (subparagraph repealed);

(c)  C is the quotient obtained by dividing the employer’s total payroll for the year by $1,000,000;

(d)  D is

i.  0.8725% for the year 2017,

ii.  0.8867% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 0.8256% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 0.5811% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019, or

iii.  for a year subsequent to the year 2018, the percentage that corresponds to the amount by which 1.25% exceeds the quotient obtained by dividing 3.01% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000; and

(e)  E is

i.  0.6775% for the year 2017,

ii.  0.6133% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 0.6244% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 0.6689% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019, or

iii.  for a year subsequent to the year 2018, the percentage that corresponds to the quotient obtained by dividing 3.01% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000. 

If the percentage determined by the formulas in subparagraphs ii and ii.1 of subparagraph a of the second paragraph has more than two decimal places, only the first two decimal digits are retained and the second is increased by one unit if the third is greater than 4. In addition, if the percentage determined in accordance with subparagraph iv of subparagraph a or b of the third paragraph or with subparagraph iii of subparagraph d or e of the third paragraph has more than four decimal places, only the first four decimal digits are retained and the fourth is increased by one unit if the fifth is greater than 4.

However, where the employer is an eligible employer at the time the wages are paid or deemed to be paid, where that time is included in the employer’s exemption period and where the wages are not wages that would not be wages because of paragraph a of the definition of “wages” in the first paragraph of section 33 if section 64 of the Act respecting international financial centres (chapter C-8.3) were read as if “75%” in the first paragraph was replaced by “100%” and were read without reference to its second paragraph, no contribution is payable under this section in respect of 75% of the portion of the wages that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages paid or deemed to be paid at that time by the employer, and each of which is wages in respect of which, in a proportion of 75%, no contribution is payable under this section by reason of this paragraph.

Subject to section 34.1.0.2, where the employer is a qualified corporation for a taxation year and the wages is paid or deemed to be paid in the year and in the exemption period of the qualified corporation, no contribution is payable under this section in respect of the amount obtained by multiplying 75% of the wages by the proportion determined, for the year, in accordance with subparagraph b of the first paragraph of section 34.1.0.1, where

(a)  the qualified corporation encloses, with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (chapter R-5, r. 1) it is required to file for the year, the prescribed form containing the prescribed information; and

(b)  where the qualified corporation would be a qualified corporation, within the meaning of sections 771.5 to 771.7 of the Taxation Act (chapter I-3) if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

In addition, no contribution is payable under this section

(a)  in respect of the wages paid or deemed to be paid by an employer if, at the time the wages are paid or deemed to be paid, the employer is an exempt employer other than an employer described in subparagraph i of subparagraph a.1 and if that time is included in the employer’s eligibility period;

(a.1)  in respect of 3/4 of the wages paid or deemed to be paid by an employer if

i.  at the time of payment or deemed payment of the wages, the employer is an exempt employer referred to in subparagraph iii of paragraph a of section 771.12 of the Taxation Act in respect of whom any of the conditions mentioned in subparagraphs 1 and 2 of subparagraph i of subparagraph b of the second paragraph of section 771.8.5 of that Act is met, and

ii.  the time of payment or deemed payment of the wages is included in the employer’s eligibility period;

(b)  in respect of the wages paid or deemed to be paid by an employer that carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  in respect of the wages paid or deemed to be paid by an employer that carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)  (paragraph repealed);

(d.1)  subject to section 34.1.0.3, in respect of the wages paid or deemed to be paid by an employer, if the wages are paid or deemed to be paid to an employee in respect of the part of the employee’s working time devoted exclusively to eligible activities of the employer, in relation to a large investment project of the employer, other than construction, expansion or modernization activities in respect of an immovable where that project will be carried out, if the wages are paid or deemed to be paid for a pay period comprised in a tax-free period of the employer, for a taxation year or a fiscal period, in relation to the project, and if the employer encloses the prescribed form containing prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year;

(e)  in respect of 3/4 of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee of the employer that is a qualified corporation, within the meaning of section 737.18.29 of the Taxation Act, in relation to the recognized business that the employer carries on, for a pay period comprised in the exemption period, within the meaning of section 737.18.29, applicable to that qualified corporation, and where the employer encloses the prescribed form containing the prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year; and

(f)  in respect of the wages paid or deemed to be paid by an employer that is an international governmental organization whose head office is situated in Québec, unless the organization consents to pay a contribution in respect of those wages.

For the purposes of subparagraphs b and c of the seventh paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraph d.1 of the seventh paragraph, the following rules must be taken into consideration:

(a)  the wages paid or deemed to be paid to an employee by an employer do not include directors’ fees, premiums, incentive bonuses, commissions or benefits referred to in Division II of Chapter II of Title II of Book III of Part I of the Taxation Act; and

(b)  where a pay period is not wholly comprised in a tax-free period of the employer, in relation to the large investment project, only the part of the period in respect of which the wages relate that is comprised in the tax-free period must be taken into account.

(c)  the wages paid or deemed to be paid to an employee in respect of the part of the employee’s working time devoted to eligible activities of an employer referred to in that subparagraph d.1, in relation to a deemed large investment project of the employer within the meaning of the seventh paragraph of section 33, for a pay period that ends after the last day of the tax-free period in respect of the first large investment project (in this section referred to as the “particular day”) is deemed to be equal to either

i.  where the pay period includes the particular day, the amount determined by the formula

A − {B × [C / (C + D)]}, or

ii.  in any other case, the amount determined by the formula

A × [D / (C + D)].

In the formulas in the ninth paragraph,

(a)  A is the wages paid or deemed to be paid to the employee in respect of the part of the employee’s working time devoted to eligible activities of the employer referred to in subparagraph d.1 of the seventh paragraph, in relation to the deemed large investment project, for the pay period, that is otherwise determined;

(b)  B is the wages paid or deemed to be paid to the employee in respect of the part of the employee’s working time devoted to eligible activities of the employer referred to in subparagraph d.1 of the seventh paragraph, in relation to the deemed large investment project, which relates to the part of the pay period that begins after the particular day and that is otherwise determined;

(c)  C is the total qualified capital investments of the employer, in relation to the first large investment project, on the date of the beginning of the tax-free period in respect of the project; and

(d)  D is the total qualified capital investments of the employer, in relation to the second large investment project, on the date of the beginning of the tax-free period in respect of the project.

For the purposes of subparagraph e of the seventh paragraph, where the pay period is not wholly comprised in the exemption period referred to in that subparagraph, only the period in respect of which the wages relate that is comprised in that exemption period shall be taken into account.

However, the seventh paragraph does not apply in respect of wages paid or deemed to be paid by an excluded employer.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438; 2004, c. 21, s. 518; 2005, c. 1, s. 327; 2005, c. 23, s. 269; 2005, c. 38, s. 351; 2009, c. 5, s. 583; 2010, c. 25, s. 239; 2015, c. 21, s. 593; 2015, c. 24, s. 164; 2017, c . 1, s. 432; 2017, c. 29, s. 233; 2019, c. 14, s. 521.

2019-06-19

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of the wages that the employer pays to the employer’s employee who reports for work at the employer’s establishment in Québec, that the employer is deemed to pay to the employee or that the employer pays in respect of the employee, or to the employer’s employee to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid, deemed to be paid or paid in respect of the employee from such an establishment in Québec.

The percentage to be applied to wages referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages (other than an eligible specified employer for that year) and the employer’s total payroll for that year is equal to or less than $1,000,000,

(1)  2.5% for the year 2017,

(2)  2.3% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 1.95% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 1.75% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019,

(3)  1.7% for the year 2019, or

(4)  1.65% for a year subsequent to the year 2019,

(5)  (subparagraph repealed);

i.1.  where the employer is an eligible specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is equal to or less than $1,000,000,

(1)  1.55% for the year 2017,

(2)  1.5% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 1.45% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 1.25% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019, or

(3)  1.25% for a year subsequent to the year 2018, 

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages (other than an eligible specified employer for that year) and the employer’s total payroll for that year is more than $1,000,000 but less than the employer’s total payroll threshold for the year, the percentage determined by the formula 

A + (B × C)

ii.1.  where the employer is an eligible specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is more than $1,000,000 but less than the employer’s total payroll threshold for the year, the percentage determined by the formula

D + (E × C)

iii.  in any other case, 4.26%; and

(b)  in the case of wages paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formulas in subparagraphs ii and ii.1 of subparagraph a of the second paragraph,

(a)  A is

i.  2.06% for the year 2017,

ii.  1.8644% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 1.4367% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 1.1922% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019,

iii.  1.188% for the year 2019, or

iv.  for a year subsequent to the year 2019, the percentage that corresponds to the amount by which 1.65% exceeds the quotient obtained by dividing 2.61% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000;

v.  (subparagraph repealed);

(b)  B is

i.  0.44% for the year 2017,

ii.  0.4356% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 0.5133% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 0.5578% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019,

iii.  0.512% for the year 2019, or

iv.  for a year subsequent to the year 2019, the percentage that corresponds to the quotient obtained by dividing 2.61% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000; 

v.  (subparagraph repealed);

(c)  C is the quotient obtained by dividing the employer’s total payroll for the year by $1,000,000;

(d)  D is

i.  0.8725% for the year 2017,

ii.  0.8867% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 0.8256% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 0.5811% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019, or

iii.  for a year subsequent to the year 2018, the percentage that corresponds to the amount by which 1.25% exceeds the quotient obtained by dividing 3.01% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000; and

(e)  E is

i.  0.6775% for the year 2017,

ii.  0.6133% in respect of wages paid or deemed to be paid after 31 December 2017 and before 28 March 2018, 0.6244% in respect of wages paid or deemed to be paid after 27 March 2018 and before 16 August 2018 and 0.6689% in respect of wages paid or deemed to be paid after 15 August 2018 and before 1 January 2019, or

iii.  for a year subsequent to the year 2018, the percentage that corresponds to the quotient obtained by dividing 3.01% by the amount by which 1 is exceeded by the proportion that the employer’s total payroll threshold for the year is of $1,000,000. 

If the percentage determined by the formulas in subparagraphs ii and ii.1 of subparagraph a of the second paragraph has more than two decimal places, only the first two decimal digits are retained and the second is increased by one unit if the third is greater than 4. In addition, if the percentage determined in accordance with subparagraph iv of subparagraph a or b of the third paragraph or with subparagraph iii of subparagraph d or e of the third paragraph has more than four decimal places, only the first four decimal digits are retained and the fourth is increased by one unit if the fifth is greater than 4.

However, where the employer is an eligible employer at the time the wages are paid or deemed to be paid, where that time is included in the employer’s exemption period and where the wages are not wages that would not be wages because of paragraph a of the definition of “wages” in the first paragraph of section 33 if section 64 of the Act respecting international financial centres (chapter C-8.3) were read as if “75%” in the first paragraph was replaced by “100%” and were read without reference to its second paragraph, no contribution is payable under this section in respect of 75% of the portion of the wages that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages paid or deemed to be paid at that time by the employer, and each of which is wages in respect of which, in a proportion of 75%, no contribution is payable under this section by reason of this paragraph.

Subject to section 34.1.0.2, where the employer is a qualified corporation for a taxation year and the wages is paid or deemed to be paid in the year and in the exemption period of the qualified corporation, no contribution is payable under this section in respect of the amount obtained by multiplying 75% of the wages by the proportion determined, for the year, in accordance with subparagraph b of the first paragraph of section 34.1.0.1, where

(a)  the qualified corporation encloses, with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (chapter R-5, r. 1) it is required to file for the year, the prescribed form containing the prescribed information; and

(b)  where the qualified corporation would be a qualified corporation, within the meaning of sections 771.5 to 771.7 of the Taxation Act (chapter I-3) if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

In addition, no contribution is payable under this section

(a)  in respect of the wages paid or deemed to be paid by an employer if, at the time the wages are paid or deemed to be paid, the employer is an exempt employer other than an employer described in subparagraph i of subparagraph a.1 and if that time is included in the employer’s eligibility period;

(a.1)  in respect of 3/4 of the wages paid or deemed to be paid by an employer if

i.  at the time of payment or deemed payment of the wages, the employer is an exempt employer referred to in subparagraph iii of paragraph a of section 771.12 of the Taxation Act in respect of whom any of the conditions mentioned in subparagraphs 1 and 2 of subparagraph i of subparagraph b of the second paragraph of section 771.8.5 of that Act is met, and

ii.  the time of payment or deemed payment of the wages is included in the employer’s eligibility period;

(b)  in respect of the wages paid or deemed to be paid by an employer that carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  in respect of the wages paid or deemed to be paid by an employer that carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)  in respect of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee in relation to the part of the working time of the employee devoted to eligible activities of the employer, in relation to a major investment project of the employer, within the meaning assigned to those expressions by section 737.18.14 of the Taxation Act, and are paid or deemed to be paid for a pay period within a particular period covered by a qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a year;

(d.1)  subject to section 34.1.0.3, in respect of the wages paid or deemed to be paid by an employer, if the wages are paid or deemed to be paid to an employee in respect of the part of the employee’s working time devoted exclusively to eligible activities of the employer, in relation to a large investment project of the employer, other than construction, expansion or modernization activities in respect of an immovable where that project will be carried out, if the wages are paid or deemed to be paid for a pay period comprised in a tax-free period of the employer, for a taxation year or a fiscal period, in relation to the project, and if the employer encloses the prescribed form containing prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year;

(e)  in respect of 3/4 of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee of the employer that is a qualified corporation, within the meaning of section 737.18.29 of the Taxation Act, in relation to the recognized business that the employer carries on, for a pay period comprised in the exemption period, within the meaning of section 737.18.29, applicable to that qualified corporation, and where the employer encloses the prescribed form containing the prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year; and

(f)  in respect of the wages paid or deemed to be paid by an employer that is an international governmental organization whose head office is situated in Québec, unless the organization consents to pay a contribution in respect of those wages.

For the purposes of subparagraphs b and c of the seventh paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraph d of the seventh paragraph, where the pay period is not included in whole in the particular period referred to therein, only the period to which the wages relate, that is within the particular period, shall be taken into account.

For the purposes of subparagraph d.1 of the seventh paragraph, the following rules must be taken into consideration:

(a)  the wages paid or deemed to be paid to an employee by an employer do not include directors’ fees, premiums, incentive bonuses, commissions or benefits referred to in Division II of Chapter II of Title II of Book III of Part I of the Taxation Act; and

(b)  where a pay period is not wholly comprised in a tax-free period of the employer, in relation to the large investment project, only the part of the period in respect of which the wages relate that is comprised in the tax-free period must be taken into account.

(c)  the wages paid or deemed to be paid to an employee in respect of the part of the employee’s working time devoted to eligible activities of an employer referred to in that subparagraph d.1, in relation to a deemed large investment project of the employer within the meaning of the seventh paragraph of section 33, for a pay period that ends after the last day of the tax-free period in respect of the first large investment project (in this section referred to as the “particular day”) is deemed to be equal to either

i.  where the pay period includes the particular day, the amount determined by the formula

A − {B × [C / (C + D)]}, or

ii.  in any other case, the amount determined by the formula

A × [D / (C + D)].

In the formulas in the ninth paragraph,

(a)  A is the wages paid or deemed to be paid to the employee in respect of the part of the employee’s working time devoted to eligible activities of the employer referred to in subparagraph d.1 of the seventh paragraph, in relation to the deemed large investment project, for the pay period, that is otherwise determined;

(b)  B is the wages paid or deemed to be paid to the employee in respect of the part of the employee’s working time devoted to eligible activities of the employer referred to in subparagraph d.1 of the seventh paragraph, in relation to the deemed large investment project, which relates to the part of the pay period that begins after the particular day and that is otherwise determined;

(c)  C is the total qualified capital investments of the employer, in relation to the first large investment project, on the date of the beginning of the tax-free period in respect of the project; and

(d)  D is the total qualified capital investments of the employer, in relation to the second large investment project, on the date of the beginning of the tax-free period in respect of the project.

For the purposes of subparagraph e of the seventh paragraph, where the pay period is not wholly comprised in the exemption period referred to in that subparagraph, only the period in respect of which the wages relate that is comprised in that exemption period shall be taken into account.

However, the seventh paragraph does not apply in respect of wages paid or deemed to be paid by an excluded employer, except where, in the case of such wages referred to in subparagraph d of that paragraph in relation to a major investment project, an application in respect of the project, accompanied by the required documents, was sent to the Minister of Finance before 11 March 2003 so that no contribution would be payable under this section in respect of the wages because of that subparagraph d.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438; 2004, c. 21, s. 518; 2005, c. 1, s. 327; 2005, c. 23, s. 269; 2005, c. 38, s. 351; 2009, c. 5, s. 583; 2010, c. 25, s. 239; 2015, c. 21, s. 593; 2015, c. 24, s. 164; 2017, c . 1, s. 432; 2017, c. 29, s. 233; 2019, c. 14, s. 521.

2017-12-07

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of the wages that the employer pays to the employer’s employee who reports for work at the employer’s establishment in Québec, that the employer is deemed to pay to the employee or that the employer pays in respect of the employee, or to the employer’s employee to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid, deemed to be paid or paid in respect of the employee from such an establishment in Québec.

The percentage to be applied to wages referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages (other than an eligible specified employer for that year) and the employer’s total payroll for that year is equal to or less than $1,000,000,

(1)  2.5% for the year 2017,

(2)  2.3% for the year 2018,

(3)  2.15% for the year 2019,

(4)  2.05% for the year 2020, or

(5)  2% for a year subsequent to the year 2020,

i.1.  where the employer is an eligible specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is equal to or less than $1,000,000,

(1)  1.55% for the year 2017,

(2)  1.5% for the years 2018 to 2020, or

(3)  1.45% for a year subsequent to the year 2020,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages (other than an eligible specified employer for that year) and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined by the formula

A + (B × C)

ii.1.  where the employer is an eligible specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined by the formula

D + (E × C)

iii.  in any other case, 4.26%; and

(b)  in the case of wages paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formulas in subparagraphs ii and ii.1 of subparagraph a of the second paragraph,

(a)  A is

i.  2.06% for the year 2017,

ii.  1.81% for the year 2018,

iii.  1.6225% for the year 2019,

iv.  1.4975% for the year 2020, or

v.  1.435% for a year subsequent to the year 2020;

(b)  B is

i.  0.44% for the year 2017,

ii.  0.49% for the year 2018,

iii.  0.5275% for the year 2019,

iv.  0.5525% for the year 2020, or

v.  0.565% for a year subsequent to the year 2020;

(c)  C is the quotient obtained by dividing the employer’s total payroll for the year by $1,000,000;

(d)  D is

i.  0.8725% for the year 2017,

ii.  0.81% for the years 2018 to 2020, or

iii.  0.7475% for a year subsequent to the year 2020; and

(e)  E is

i.  0.6775% for the year 2017,

ii.  0.69% for the years 2018 to 2020, or

iii.  0.7025% for a year subsequent to the year 2020.

If the percentage determined by the formulas in subparagraphs ii and ii.1 of subparagraph a of the second paragraph has more than two decimal places, only the first two decimal digits are retained and the second is increased by one unit if the third is greater than 4.

However, where the employer is an eligible employer at the time the wages are paid or deemed to be paid, where that time is included in the employer’s exemption period and where the wages are not wages that would not be wages because of paragraph a of the definition of “wages” in the first paragraph of section 33 if section 64 of the Act respecting international financial centres (chapter C-8.3) were read as if “75%” in the first paragraph was replaced by “100%” and were read without reference to its second paragraph, no contribution is payable under this section in respect of 75% of the portion of the wages that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages paid or deemed to be paid at that time by the employer, and each of which is wages in respect of which, in a proportion of 75%, no contribution is payable under this section by reason of this paragraph.

Subject to section 34.1.0.2, where the employer is a qualified corporation for a taxation year and the wages is paid or deemed to be paid in the year and in the exemption period of the qualified corporation, no contribution is payable under this section in respect of the amount obtained by multiplying 75% of the wages by the proportion determined, for the year, in accordance with subparagraph b of the first paragraph of section 34.1.0.1, where

(a)  the qualified corporation encloses, with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (chapter R-5, r. 1) it is required to file for the year, the prescribed form containing the prescribed information; and

(b)  where the qualified corporation would be a qualified corporation, within the meaning of sections 771.5 to 771.7 of the Taxation Act (chapter I-3) if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

In addition, no contribution is payable under this section

(a)  in respect of the wages paid or deemed to be paid by an employer if, at the time the wages are paid or deemed to be paid, the employer is an exempt employer other than an employer described in subparagraph i of subparagraph a.1 and if that time is included in the employer’s eligibility period;

(a.1)  in respect of 3/4 of the wages paid or deemed to be paid by an employer if

i.  at the time of payment or deemed payment of the wages, the employer is an exempt employer referred to in subparagraph iii of paragraph a of section 771.12 of the Taxation Act in respect of whom any of the conditions mentioned in subparagraphs 1 and 2 of subparagraph i of subparagraph b of the second paragraph of section 771.8.5 of that Act is met, and

ii.  the time of payment or deemed payment of the wages is included in the employer’s eligibility period;

(b)  in respect of the wages paid or deemed to be paid by an employer that carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  in respect of the wages paid or deemed to be paid by an employer that carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)  in respect of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee in relation to the part of the working time of the employee devoted to eligible activities of the employer, in relation to a major investment project of the employer, within the meaning assigned to those expressions by section 737.18.14 of the Taxation Act, and are paid or deemed to be paid for a pay period within a particular period covered by a qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a year;

(d.1)  subject to section 34.1.0.3, in respect of the wages paid or deemed to be paid by an employer, if the wages are paid or deemed to be paid to an employee in respect of the part of the employee’s working time devoted to eligible activities of the employer, in relation to a large investment project of the employer, other than construction, expansion or modernization activities in respect of an immovable where that project will be carried out, if the wages are paid or deemed to be paid for a pay period comprised in a tax-free period of the employer, for a taxation year or a fiscal period, in relation to the project, and if the employer encloses the prescribed form containing prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year;

(e)  in respect of 3/4 of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee of the employer that is a qualified corporation, within the meaning of section 737.18.29 of the Taxation Act, in relation to the recognized business that the employer carries on, for a pay period comprised in the exemption period, within the meaning of section 737.18.29, applicable to that qualified corporation, and where the employer encloses the prescribed form containing the prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year; and

(f)  in respect of the wages paid or deemed to be paid by an employer that is an international governmental organization whose head office is situated in Québec, unless the organization consents to pay a contribution in respect of those wages.

For the purposes of subparagraphs b and c of the seventh paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraph d of the seventh paragraph, where the pay period is not included in whole in the particular period referred to therein, only the period to which the wages relate, that is within the particular period, shall be taken into account.

For the purposes of subparagraph d.1 of the seventh paragraph, the following rules must be taken into consideration:

(a)  the wages paid or deemed to be paid to an employee by an employer do not include directors’ fees, premiums, incentive bonuses, commissions or benefits referred to in Division II of Chapter II of Title II of Book III of Part I of the Taxation Act; and

(b)  where a pay period is not wholly comprised in a tax-free period of the employer, in relation to the large investment project, only the part of the period in respect of which the wages relate that is comprised in the tax-free period must be taken into account.

For the purposes of subparagraph e of the seventh paragraph, where the pay period is not wholly comprised in the exemption period referred to in that subparagraph, only the period in respect of which the wages relate that is comprised in that exemption period shall be taken into account.

However, the seventh paragraph does not apply in respect of wages paid or deemed to be paid by an excluded employer, except where, in the case of such wages referred to in subparagraph d of that paragraph in relation to a major investment project, an application in respect of the project, accompanied by the required documents, was sent to the Minister of Finance before 11 March 2003 so that no contribution would be payable under this section in respect of the wages because of that subparagraph d.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438; 2004, c. 21, s. 518; 2005, c. 1, s. 327; 2005, c. 23, s. 269; 2005, c. 38, s. 351; 2009, c. 5, s. 583; 2010, c. 25, s. 239; 2015, c. 21, s. 593; 2015, c. 24, s. 164; 2017, c . 1, s. 432; 2017, c. 29, s. 233.

2017-02-08

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of the wages that the employer pays to the employer’s employee who reports for work at the employer’s establishment in Québec, that the employer is deemed to pay to the employee or that the employer pays in respect of the employee, or to the employer’s employee to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid, deemed to be paid or paid in respect of the employee from such an establishment in Québec.

The percentage to be applied to wages referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages (other than an eligible specified employer for that year) and the employer’s total payroll for that year is equal to or less than $1,000,000,

(1)  2.5% for the year 2017,

(2)  2.3% for the year 2018,

(3)  2.15% for the year 2019,

(4)  2.05% for the year 2020, or

(5)  2% for a year subsequent to the year 2020,

i.1.  where the employer is an eligible specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is equal to or less than $1,000,000,

(1)  1.55% for the year 2017,

(2)  1.5% for the years 2018 to 2020, or

(3)  1.45% for a year subsequent to the year 2020,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages (other than an eligible specified employer for that year) and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined by the formula

A + (B × C)

ii.1.  where the employer is an eligible specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined by the formula

D + (E × C)

iii.  in any other case, 4.26%; and

(b)  in the case of wages paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formulas in subparagraphs ii and ii.1 of subparagraph a of the second paragraph,

(a)  A is

i.  2.06% for the year 2017,

ii.  1.81% for the year 2018,

iii.  1.6225% for the year 2019,

iv.  1.4975% for the year 2020, or

v.  1.435% for a year subsequent to the year 2020;

(b)  B is

i.  0.44% for the year 2017,

ii.  0.49% for the year 2018,

iii.  0.5275% for the year 2019,

iv.  0.5525% for the year 2020, or

v.  0.565% for a year subsequent to the year 2020;

(c)  C is the quotient obtained by dividing the employer’s total payroll for the year by $1,000,000;

(d)  D is

i.  0.8725% for the year 2017,

ii.  0.81% for the years 2018 to 2020, or

iii.  0.7475% for a year subsequent to the year 2020; and

(e)  E is

i.  0.6775% for the year 2017,

ii.  0.69% for the years 2018 to 2020, or

iii.  0.7025% for a year subsequent to the year 2020.

If the percentage determined by the formulas in subparagraphs ii and ii.1 of subparagraph a of the second paragraph has more than two decimal places, only the first two decimal digits are retained and the second is increased by one unit if the third is greater than 4.

However, where the employer is an eligible employer at the time the wages are paid or deemed to be paid, where that time is included in the employer’s exemption period and where the wages are not wages that would not be wages because of paragraph a of the definition of “wages” in the first paragraph of section 33 if section 64 of the Act respecting international financial centres (chapter C-8.3) were read as if “75%” in the first paragraph was replaced by “100%” and were read without reference to its second paragraph, no contribution is payable under this section in respect of 75% of the portion of the wages that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages paid or deemed to be paid at that time by the employer, and each of which is wages in respect of which, in a proportion of 75%, no contribution is payable under this section by reason of this paragraph.

Subject to section 34.1.0.2, where the employer is a qualified corporation for a taxation year and the wages is paid or deemed to be paid in the year and in the exemption period of the qualified corporation, no contribution is payable under this section in respect of the amount obtained by multiplying 75% of the wages by the proportion determined, for the year, in accordance with subparagraph b of the first paragraph of section 34.1.0.1, where

(a)  the qualified corporation encloses, with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (chapter R-5, r. 1) it is required to file for the year, the prescribed form containing the prescribed information; and

(b)  where the qualified corporation would be a qualified corporation, within the meaning of sections 771.5 to 771.7 of the Taxation Act (chapter I-3) if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

In addition, no contribution is payable under this section

(a)  in respect of the wages paid or deemed to be paid by an employer if, at the time the wages are paid or deemed to be paid, the employer is an exempt employer other than an employer described in subparagraph i of subparagraph a.1 and if that time is included in the employer’s eligibility period;

(a.1)  in respect of 3/4 of the wages paid or deemed to be paid by an employer if

i.  at the time of payment or deemed payment of the wages, the employer is an exempt employer referred to in subparagraph iii of paragraph a of section 771.12 of the Taxation Act in respect of whom any of the conditions mentioned in subparagraphs 1 and 2 of subparagraph i of subparagraph b of the second paragraph of section 771.8.5 of that Act is met, and

ii.  the time of payment or deemed payment of the wages is included in the employer’s eligibility period;

(b)  in respect of the wages paid or deemed to be paid by an employer that carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  in respect of the wages paid or deemed to be paid by an employer that carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)  in respect of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee in relation to the part of the working time of the employee devoted to eligible activities of the employer, in relation to a major investment project of the employer, within the meaning assigned to those expressions by section 737.18.14 of the Taxation Act, and are paid or deemed to be paid for a pay period within a particular period covered by a qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a year;

(d.1)  subject to section 34.1.0.3, in respect of the wages paid or deemed to be paid by an employer, if the wages are paid or deemed to be paid to an employee in respect of the part of the employee’s working time devoted to eligible activities of the employer, in relation to a large investment project of the employer, other than construction, expansion or modernization activities in respect of an immovable where that project will be carried out, if the wages are paid or deemed to be paid for a pay period comprised in a tax-free period of the employer, for a taxation year or a fiscal period, in relation to the project, and if the employer encloses the prescribed form containing prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year; and

(e)  in respect of 3/4 of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee of the employer that is a qualified corporation, within the meaning of section 737.18.29 of the Taxation Act, in relation to the recognized business that the employer carries on, for a pay period comprised in the exemption period, within the meaning of section 737.18.29, applicable to that qualified corporation, and where the employer encloses the prescribed form containing the prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year.

For the purposes of subparagraphs b and c of the seventh paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraph d of the seventh paragraph, where the pay period is not included in whole in the particular period referred to therein, only the period to which the wages relate, that is within the particular period, shall be taken into account.

For the purposes of subparagraph d.1 of the seventh paragraph, the following rules must be taken into consideration:

(a)  the wages paid or deemed to be paid to an employee by an employer do not include directors’ fees, premiums, incentive bonuses, commissions or benefits referred to in Division II of Chapter II of Title II of Book III of Part I of the Taxation Act; and

(b)  where a pay period is not wholly comprised in a tax-free period of the employer, in relation to the large investment project, only the part of the period in respect of which the wages relate that is comprised in the tax-free period must be taken into account.

For the purposes of subparagraph e of the seventh paragraph, where the pay period is not wholly comprised in the exemption period referred to in that subparagraph, only the period in respect of which the wages relate that is comprised in that exemption period shall be taken into account.

However, the seventh paragraph does not apply in respect of wages paid or deemed to be paid by an excluded employer, except where, in the case of such wages referred to in subparagraph d of that paragraph in relation to a major investment project, an application in respect of the project, accompanied by the required documents, was sent to the Minister of Finance before 11 March 2003 so that no contribution would be payable under this section in respect of the wages because of that subparagraph d.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438; 2004, c. 21, s. 518; 2005, c. 1, s. 327; 2005, c. 23, s. 269; 2005, c. 38, s. 351; 2009, c. 5, s. 583; 2010, c. 25, s. 239; 2015, c. 21, s. 593; 2015, c. 24, s. 164; 2017, c . 1, s. 432.

2015-10-26

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of the wages that the employer pays to the employer’s employee who reports for work at the employer’s establishment in Québec, that the employer is deemed to pay to the employee or that the employer pays in respect of the employee, or to the employer’s employee to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid, deemed to be paid or paid in respect of the employee from such an establishment in Québec.

The percentage to be applied to wages referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages (other than an eligible specified employer for that year) and the employer’s total payroll for that year is equal to or less than $1,000,000, 2.7%,

i.1.  where the employer is an eligible specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is equal to or less than $1,000,000, 1.6%,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages (other than an eligible specified employer for that year) and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined by the formula

2.31% + (0.39% × A), and

ii.1.  where the employer is an eligible specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined by the formula

0.935% + (0.665% × A), and

iii.  in any other case, 4.26%; and

(b)  in the case of wages paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formulas in subparagraphs ii and ii.1 of subparagraph a of the second paragraph, A is the quotient obtained by dividing the employer’s total payroll for the year by $1,000,000.

If the percentage determined by the formulas in subparagraphs ii and ii.1 of subparagraph a of the second paragraph has more than two decimal places, only the first two decimal digits are retained and the second is increased by one unit if the third is greater than 4.

However, where the employer is an eligible employer at the time the wages are paid or deemed to be paid, where that time is included in the employer’s exemption period and where the wages are not wages that would not be wages because of paragraph a of the definition of “wages” in the first paragraph of section 33 if section 64 of the Act respecting international financial centres (chapter C-8.3) were read as if “75%” in the first paragraph was replaced by “100%” and were read without reference to its second paragraph, no contribution is payable under this section in respect of 75% of the portion of the wages that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages paid or deemed to be paid at that time by the employer, and each of which is wages in respect of which, in a proportion of 75%, no contribution is payable under this section by reason of this paragraph.

Subject to section 34.1.0.2, where the employer is a qualified corporation for a taxation year and the wages is paid or deemed to be paid in the year and in the exemption period of the qualified corporation, no contribution is payable under this section in respect of the amount obtained by multiplying 75% of the wages by the proportion determined, for the year, in accordance with subparagraph b of the first paragraph of section 34.1.0.1, where

(a)  the qualified corporation encloses, with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (chapter R-5, r. 1) it is required to file for the year, the prescribed form containing the prescribed information; and

(b)  where the qualified corporation would be a qualified corporation, within the meaning of sections 771.5 to 771.7 of the Taxation Act (chapter I-3) if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

In addition, no contribution is payable under this section

(a)  in respect of the wages paid or deemed to be paid by an employer if, at the time the wages are paid or deemed to be paid, the employer is an exempt employer other than an employer described in subparagraph i of subparagraph a.1 and if that time is included in the employer’s eligibility period;

(a.1)  in respect of 3/4 of the wages paid or deemed to be paid by an employer if

i.  at the time of payment or deemed payment of the wages, the employer is an exempt employer referred to in subparagraph iii of paragraph a of section 771.12 of the Taxation Act in respect of whom any of the conditions mentioned in subparagraphs 1 and 2 of subparagraph i of subparagraph b of the second paragraph of section 771.8.5 of that Act is met, and

ii.  the time of payment or deemed payment of the wages is included in the employer’s eligibility period;

(b)  in respect of the wages paid or deemed to be paid by an employer that carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  in respect of the wages paid or deemed to be paid by an employer that carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)  in respect of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee in relation to the part of the working time of the employee devoted to eligible activities of the employer, in relation to a major investment project of the employer, within the meaning assigned to those expressions by section 737.18.14 of the Taxation Act, and are paid or deemed to be paid for a pay period within a particular period covered by a qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a year;

(d.1)  subject to section 34.1.0.3, in respect of the wages paid or deemed to be paid by an employer, if the wages are paid or deemed to be paid to an employee in respect of the part of the employee’s working time devoted to eligible activities of the employer, in relation to a large investment project of the employer, other than construction, expansion or modernization activities in respect of an immovable where that project will be carried out, if the wages are paid or deemed to be paid for a pay period comprised in a tax-free period of the employer, for a taxation year or a fiscal period, in relation to the project, and if the employer encloses the prescribed form containing prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year; and

(e)  in respect of 3/4 of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee of the employer that is a qualified corporation, within the meaning of section 737.18.29 of the Taxation Act, in relation to the recognized business that the employer carries on, for a pay period comprised in the exemption period, within the meaning of section 737.18.29, applicable to that qualified corporation, and where the employer encloses the prescribed form containing the prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year.

For the purposes of subparagraphs b and c of the seventh paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraph d of the seventh paragraph, where the pay period is not included in whole in the particular period referred to therein, only the period to which the wages relate, that is within the particular period, shall be taken into account.

For the purposes of subparagraph d.1 of the seventh paragraph, the following rules must be taken into consideration:

(a)  the wages paid or deemed to be paid to an employee by an employer do not include directors’ fees, premiums, incentive bonuses, commissions or benefits referred to in Division II of Chapter II of Title II of Book III of Part I of the Taxation Act; and

(b)  where a pay period is not wholly comprised in a tax-free period of the employer, in relation to the large investment project, only the part of the period in respect of which the wages relate that is comprised in the tax-free period must be taken into account.

For the purposes of subparagraph e of the seventh paragraph, where the pay period is not wholly comprised in the exemption period referred to in that subparagraph, only the period in respect of which the wages relate that is comprised in that exemption period shall be taken into account.

However, the seventh paragraph does not apply in respect of wages paid or deemed to be paid by an excluded employer, except where, in the case of such wages referred to in subparagraph d of that paragraph in relation to a major investment project, an application in respect of the project, accompanied by the required documents, was sent to the Minister of Finance before 11 March 2003 so that no contribution would be payable under this section in respect of the wages because of that subparagraph d.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438; 2004, c. 21, s. 518; 2005, c. 1, s. 327; 2005, c. 23, s. 269; 2005, c. 38, s. 351; 2009, c. 5, s. 583; 2010, c. 25, s. 239; 2015, c. 21, s. 593; 2015, c. 24, s. 164.

2015-10-21

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of the wages that the employer pays to the employer’s employee who reports for work at the employer’s establishment in Québec, that the employer is deemed to pay to the employee or that the employer pays in respect of the employee, or to the employer’s employee to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid, deemed to be paid or paid in respect of the employee from such an establishment in Québec.

The percentage to be applied to wages referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is equal to or less than $1,000,000, 2.7%,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined according to the formula

2.31% + (0.39% × A), and

iii.  in any other case, 4.26%; and

(b)  in the case of wages paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formula provided for in subparagraph ii of subparagraph a of the second paragraph, A is the quotient obtained by dividing the employer’s total payroll for the year referred to therein by $1,000,000.

If the percentage determined according to the formula provided for in subparagraph ii of subparagraph a of the second paragraph has more than two decimal places, only the first two are retained and the second is increased by one unit if the third decimal is greater than 4.

However, where the employer is an eligible employer at the time the wages are paid or deemed to be paid, where that time is included in the employer’s exemption period and where the wages are not wages that would not be wages because of paragraph a of the definition of “wages” in the first paragraph of section 33 if section 64 of the Act respecting international financial centres (chapter C-8.3) were read as if “75%” in the first paragraph was replaced by “100%” and were read without reference to its second paragraph, no contribution is payable under this section in respect of 75% of the portion of the wages that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages paid or deemed to be paid at that time by the employer, and each of which is wages in respect of which, in a proportion of 75%, no contribution is payable under this section by reason of this paragraph.

Subject to section 34.1.0.2, where the employer is a qualified corporation for a taxation year and the wages is paid or deemed to be paid in the year and in the exemption period of the qualified corporation, no contribution is payable under this section in respect of the amount obtained by multiplying 75% of the wages by the proportion determined, for the year, in accordance with subparagraph b of the first paragraph of section 34.1.0.1, where

(a)  the qualified corporation encloses, with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (chapter R-5, r. 1) it is required to file for the year, the prescribed form containing the prescribed information; and

(b)  where the qualified corporation would be a qualified corporation, within the meaning of sections 771.5 to 771.7 of the Taxation Act (chapter I-3) if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

In addition, no contribution is payable under this section

(a)  in respect of the wages paid or deemed to be paid by an employer if, at the time the wages are paid or deemed to be paid, the employer is an exempt employer other than an employer described in subparagraph i of subparagraph a.1 and if that time is included in the employer’s eligibility period;

(a.1)  in respect of 3/4 of the wages paid or deemed to be paid by an employer if

i.  at the time of payment or deemed payment of the wages, the employer is an exempt employer referred to in subparagraph iii of paragraph a of section 771.12 of the Taxation Act in respect of whom any of the conditions mentioned in subparagraphs 1 and 2 of subparagraph i of subparagraph b of the second paragraph of section 771.8.5 of that Act is met, and

ii.  the time of payment or deemed payment of the wages is included in the employer’s eligibility period;

(b)  in respect of the wages paid or deemed to be paid by an employer that carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  in respect of the wages paid or deemed to be paid by an employer that carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)  in respect of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee in relation to the part of the working time of the employee devoted to eligible activities of the employer, in relation to a major investment project of the employer, within the meaning assigned to those expressions by section 737.18.14 of the Taxation Act, and are paid or deemed to be paid for a pay period within a particular period covered by a qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a year;

(d.1)  subject to section 34.1.0.3, in respect of the wages paid or deemed to be paid by an employer, if the wages are paid or deemed to be paid to an employee in respect of the part of the employee’s working time devoted to eligible activities of the employer, in relation to a large investment project of the employer, other than construction, expansion or modernization activities in respect of an immovable where that project will be carried out, if the wages are paid or deemed to be paid for a pay period comprised in a tax-free period of the employer, for a taxation year or a fiscal period, in relation to the project, and if the employer encloses the prescribed form containing prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year; and

(e)  in respect of 3/4 of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee of the employer that is a qualified corporation, within the meaning of section 737.18.29 of the Taxation Act, in relation to the recognized business that the employer carries on, for a pay period comprised in the exemption period, within the meaning of section 737.18.29, applicable to that qualified corporation, and where the employer encloses the prescribed form containing the prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year.

For the purposes of subparagraphs b and c of the seventh paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraph d of the seventh paragraph, where the pay period is not included in whole in the particular period referred to therein, only the period to which the wages relate, that is within the particular period, shall be taken into account.

For the purposes of subparagraph d.1 of the seventh paragraph, the following rules must be taken into consideration:

(a)  the wages paid or deemed to be paid to an employee by an employer do not include directors’ fees, premiums, incentive bonuses, commissions or benefits referred to in Division II of Chapter II of Title II of Book III of Part I of the Taxation Act; and

(b)  where a pay period is not wholly comprised in a tax-free period of the employer, in relation to the large investment project, only the part of the period in respect of which the wages relate that is comprised in the tax-free period must be taken into account.

For the purposes of subparagraph e of the seventh paragraph, where the pay period is not wholly comprised in the exemption period referred to in that subparagraph, only the period in respect of which the wages relate that is comprised in that exemption period shall be taken into account.

However, the seventh paragraph does not apply in respect of wages paid or deemed to be paid by an excluded employer, except where, in the case of such wages referred to in subparagraph d of that paragraph in relation to a major investment project, an application in respect of the project, accompanied by the required documents, was sent to the Minister of Finance before 11 March 2003 so that no contribution would be payable under this section in respect of the wages because of that subparagraph d.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438; 2004, c. 21, s. 518; 2005, c. 1, s. 327; 2005, c. 23, s. 269; 2005, c. 38, s. 351; 2009, c. 5, s. 583; 2010, c. 25, s. 239; 2015, c. 21, s. 593.

2011-04-01

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of the wages that the employer pays to the employer’s employee who reports for work at the employer’s establishment in Québec, that the employer is deemed to pay to the employee or that the employer pays in respect of the employee, or to the employer’s employee to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid, deemed to be paid or paid in respect of the employee from such an establishment in Québec.

The percentage to be applied to wages referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is equal to or less than $1,000,000, 2.7%,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined according to the formula

2.31% + (0.39% × A), and

iii.  in any other case, 4.26%; and

(b)  in the case of wages paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formula provided for in subparagraph ii of subparagraph a of the second paragraph, A is the quotient obtained by dividing the employer’s total payroll for the year referred to therein by $1,000,000.

If the percentage determined according to the formula provided for in subparagraph ii of subparagraph a of the second paragraph has more than two decimal places, only the first two are retained and the second is increased by one unit if the third decimal is greater than 4.

However, where the employer is an eligible employer at the time the wages are paid or deemed to be paid, where that time is included in the employer’s exemption period and where the wages are not wages that would not be wages because of paragraph a of the definition of “wages” in the first paragraph of section 33 if section 64 of the Act respecting international financial centres (chapter C-8.3) were read as if “75%” in the first paragraph was replaced by “100%” and were read without reference to its second paragraph, no contribution is payable under this section in respect of 75% of the portion of the wages that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages paid or deemed to be paid at that time by the employer, and each of which is wages in respect of which, in a proportion of 75%, no contribution is payable under this section by reason of this paragraph.

Subject to section 34.1.0.2, where the employer is a qualified corporation for a taxation year and the wages is paid or deemed to be paid in the year and in the exemption period of the qualified corporation, no contribution is payable under this section in respect of the amount obtained by multiplying 75% of the wages by the proportion determined, for the year, in accordance with subparagraph b of the first paragraph of section 34.1.0.1, where

(a)  the qualified corporation encloses, with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (chapter R-5, r. 1) it is required to file for the year, the prescribed form containing the prescribed information; and

(b)  where the qualified corporation would be a qualified corporation, within the meaning of sections 771.5 to 771.7 of the Taxation Act (chapter I-3) if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

In addition, no contribution is payable under this section

(a)  in respect of the wages paid or deemed to be paid by an employer if, at the time the wages are paid or deemed to be paid, the employer is an exempt employer other than an employer described in subparagraph i of subparagraph a.1 and if that time is included in the employer’s eligibility period;

(a.1)  in respect of 3/4 of the wages paid or deemed to be paid by an employer if

i.  at the time of payment or deemed payment of the wages, the employer is an exempt employer referred to in subparagraph iii of paragraph a of section 771.12 of the Taxation Act in respect of whom any of the conditions mentioned in subparagraphs 1 and 2 of subparagraph i of subparagraph b of the second paragraph of section 771.8.5 of that Act is met, and

ii.  the time of payment or deemed payment of the wages is included in the employer’s eligibility period;

(b)  in respect of the wages paid or deemed to be paid by an employer that carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  in respect of the wages paid or deemed to be paid by an employer that carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)  in respect of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee in relation to the part of the working time of the employee devoted to eligible activities of the employer, in relation to a major investment project of the employer, within the meaning assigned to those expressions by section 737.18.14 of the Taxation Act, and are paid or deemed to be paid for a pay period within a particular period covered by a qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a year; and

(e)  in respect of 3/4 of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee of the employer that is a qualified corporation, within the meaning of section 737.18.29 of the Taxation Act, in relation to the recognized business that the employer carries on, for a pay period comprised in the exemption period, within the meaning of section 737.18.29, applicable to that qualified corporation, and where the employer encloses the prescribed form containing the prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year.

For the purposes of subparagraphs b and c of the seventh paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraph d of the seventh paragraph, where the pay period is not included in whole in the particular period referred to therein, only the period to which the wages relate, that is within the particular period, shall be taken into account.

For the purposes of subparagraph e of the seventh paragraph, where the pay period is not wholly comprised in the exemption period referred to in that subparagraph, only the period in respect of which the wages relate that is comprised in that exemption period shall be taken into account.

However, the seventh paragraph does not apply in respect of wages paid or deemed to be paid by an excluded employer, except where, in the case of such wages referred to in subparagraph d of that paragraph in relation to a major investment project, an application in respect of the project, accompanied by the required documents, was sent to the Minister of Finance before 11 March 2003 so that no contribution would be payable under this section in respect of the wages because of that subparagraph d.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438; 2004, c. 21, s. 518; 2005, c. 1, s. 327; 2005, c. 23, s. 269; 2005, c. 38, s. 351; 2009, c. 5, s. 583; 2010, c. 25, s. 239.

2010-10-27

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of the wages that the employer pays to the employer’s employee who reports for work at the employer’s establishment in Québec, that the employer is deemed to pay to the employee or that the employer pays in respect of the employee, or to the employer’s employee to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid, deemed to be paid or paid in respect of the employee from such an establishment in Québec.

The percentage to be applied to wages referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is equal to or less than $1,000,000, 2.7%,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined according to the formula

2.31% + (0.39% × A), and

iii.  in any other case, 4.26%; and

(b)  in the case of wages paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formula provided for in subparagraph ii of subparagraph a of the second paragraph, A is the quotient obtained by dividing the employer’s total payroll for the year referred to therein by $1,000,000.

If the percentage determined according to the formula provided for in subparagraph ii of subparagraph a of the second paragraph has more than two decimal places, only the first two are retained and the second is increased by one unit if the third decimal is greater than 4.

However, where the employer is an eligible employer at the time the wages are paid or deemed to be paid, where that time is included in the employer’s exemption period and where the wages are not wages that would not be wages because of paragraph a of the definition of “wages” in the first paragraph of section 33 if section 64 of the Act respecting international financial centres (chapter C-8.3) were read as if “75%” in the first paragraph was replaced by “100%” and were read without reference to its second paragraph, no contribution is payable under this section in respect of 75% of the portion of the wages that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages paid or deemed to be paid at that time by the employer, and each of which is wages in respect of which, in a proportion of 75%, no contribution is payable under this section by reason of this paragraph.

Subject to section 34.1.0.2, where the employer is a qualified corporation for a taxation year and the wages is paid or deemed to be paid in the year and in the exemption period of the qualified corporation, no contribution is payable under this section in respect of the amount obtained by multiplying 75% of the wages by the proportion determined, for the year, in accordance with subparagraph b of the first paragraph of section 34.1.0.1, where

(a)  the qualified corporation encloses, with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (R.R.Q., 1981, c. R-5, r. 1) it is required to file for the year, the prescribed form containing the prescribed information; and

(b)  where the qualified corporation would be a qualified corporation, within the meaning of sections 771.5 to 771.7 of the Taxation Act (chapter I-3) if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

In addition, no contribution is payable under this section

(a)  in respect of the wages paid or deemed to be paid by an employer if, at the time the wages are paid or deemed to be paid, the employer is an exempt employer other than an employer described in subparagraph i of subparagraph a.1 and if that time is included in the employer’s eligibility period;

(a.1)  in respect of 3/4 of the wages paid or deemed to be paid by an employer if

i.  at the time of payment or deemed payment of the wages, the employer is an exempt employer referred to in subparagraph iii of paragraph a of section 771.12 of the Taxation Act in respect of whom any of the conditions mentioned in subparagraphs 1 and 2 of subparagraph i of subparagraph b of the second paragraph of section 771.8.5 of that Act is met, and

ii.  the time of payment or deemed payment of the wages is included in the employer’s eligibility period;

(b)  in respect of the wages paid or deemed to be paid by an employer that carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  in respect of the wages paid or deemed to be paid by an employer that carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)  in respect of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee in relation to the part of the working time of the employee devoted to eligible activities of the employer, in relation to a major investment project of the employer, within the meaning assigned to those expressions by section 737.18.14 of the Taxation Act, and are paid or deemed to be paid for a pay period within a particular period covered by a qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a year; and

(e)  in respect of 3/4 of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee of the employer that is a qualified corporation, within the meaning of section 737.18.29 of the Taxation Act, in relation to the recognized business that the employer carries on, for a pay period comprised in the exemption period, within the meaning of section 737.18.29, applicable to that qualified corporation, and where the employer encloses the prescribed form containing the prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year.

For the purposes of subparagraphs b and c of the seventh paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraph d of the seventh paragraph, where the pay period is not included in whole in the particular period referred to therein, only the period to which the wages relate, that is within the particular period, shall be taken into account.

For the purposes of subparagraph e of the seventh paragraph, where the pay period is not wholly comprised in the exemption period referred to in that subparagraph, only the period in respect of which the wages relate that is comprised in that exemption period shall be taken into account.

However, the seventh paragraph does not apply in respect of wages paid or deemed to be paid by an excluded employer, except where, in the case of such wages referred to in subparagraph d of that paragraph in relation to a major investment project, an application in respect of the project, accompanied by the required documents, was sent to the Minister of Finance before 11 March 2003 so that no contribution would be payable under this section in respect of the wages because of that subparagraph d.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438; 2004, c. 21, s. 518; 2005, c. 1, s. 327; 2005, c. 23, s. 269; 2005, c. 38, s. 351; 2009, c. 5, s. 583; 2010, c. 25, s. 239.

2009-05-15

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of the wages that the employer pays to the employer’s employee who reports for work at the employer’s establishment in Québec, that the employer is deemed to pay to the employee or that the employer pays in respect of the employee, or to the employer’s employee to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid, deemed to be paid or paid in respect of the employee from such an establishment in Québec.

The percentage to be applied to wages referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is equal to or less than $1,000,000, 2.7%,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined according to the formula

2.31% + (0.39% × A), and

iii.  in any other case, 4.26%; and

(b)  in the case of wages paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formula provided for in subparagraph ii of subparagraph a of the second paragraph, A is the quotient obtained by dividing the employer’s total payroll for the year referred to therein by $1,000,000.

If the percentage determined according to the formula provided for in subparagraph ii of subparagraph a of the second paragraph has more than two decimal places, only the first two are retained and the second is increased by one unit if the third decimal is greater than 4.

However, where the employer is an eligible employer at the time the wages are paid or deemed to be paid, where that time is included in the employer’s exemption period and where the wages are not wages that would not be wages because of paragraph a of the definition of “wages” in the first paragraph of section 33 if section 64 of the Act respecting international financial centres (chapter C-8.3) were read as if “75%” in the first paragraph was replaced by “100%” and were read without reference to its second paragraph, no contribution is payable under this section in respect of 75% of the portion of the wages that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages paid or deemed to be paid at that time by the employer, and each of which is wages in respect of which, in a proportion of 75%, no contribution is payable under this section by reason of this paragraph.

Where the employer is a qualified corporation for a taxation year and the wages is paid or deemed to be paid in the year and in the exemption period of the qualified corporation, no contribution is payable under this section in respect of the amount obtained by multiplying 75% of the wages by the proportion determined, for the year, in accordance with subparagraph b of the first paragraph of section 34.1.0.1, where

(a)  the qualified corporation encloses, with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (R.R.Q., 1981, c. R-5, r. 1) it is required to file for the year, the prescribed form containing the prescribed information; and

(b)  where the qualified corporation would be a qualified corporation, within the meaning of sections 771.5 to 771.7 of the Taxation Act (chapter I-3) if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

In addition, no contribution is payable under this section

(a)  in respect of the wages paid or deemed to be paid by an employer if, at the time the wages are paid or deemed to be paid, the employer is an exempt employer other than an employer described in subparagraph i of subparagraph a.1 and if that time is included in the employer’s eligibility period;

(a.1)  in respect of 3/4 of the wages paid or deemed to be paid by an employer if

i.  at the time of payment or deemed payment of the wages, the employer is an exempt employer referred to in subparagraph iii of paragraph a of section 771.12 of the Taxation Act in respect of whom any of the conditions mentioned in subparagraphs 1 and 2 of subparagraph i of subparagraph b of the second paragraph of section 771.8.5 of that Act is met, and

ii.  the time of payment or deemed payment of the wages is included in the employer’s eligibility period;

(b)  in respect of the wages paid or deemed to be paid by an employer that carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  in respect of the wages paid or deemed to be paid by an employer that carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)  in respect of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee in relation to the part of the working time of the employee devoted to eligible activities of the employer, in relation to a major investment project of the employer, within the meaning assigned to those expressions by section 737.18.14 of the Taxation Act, and are paid or deemed to be paid for a pay period within a particular period covered by a qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a year; and

(e)  in respect of 3/4 of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee of the employer that is a qualified corporation, within the meaning of section 737.18.29 of the Taxation Act, in relation to the recognized business that the employer carries on, for a pay period comprised in the exemption period, within the meaning of section 737.18.29, applicable to that qualified corporation, and where the employer encloses the prescribed form containing the prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year.

For the purposes of subparagraphs b and c of the seventh paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraph d of the seventh paragraph, where the pay period is not included in whole in the particular period referred to therein, only the period to which the wages relate, that is within the particular period, shall be taken into account.

For the purposes of subparagraph e of the seventh paragraph, where the pay period is not wholly comprised in the exemption period referred to in that subparagraph, only the period in respect of which the wages relate that is comprised in that exemption period shall be taken into account.

However, the seventh paragraph does not apply in respect of wages paid or deemed to be paid by an excluded employer, except where, in the case of such wages referred to in subparagraph d of that paragraph in relation to a major investment project, an application in respect of the project, accompanied by the required documents, was sent to the Minister of Finance before 11 March 2003 so that no contribution would be payable under this section in respect of the wages because of that subparagraph d.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438; 2004, c. 21, s. 518; 2005, c. 1, s. 327; 2005, c. 23, s. 269; 2005, c. 38, s. 351; 2009, c. 5, s. 583.

2005-12-13

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of the wages that the employer pays to the employer’s employee who reports for work at the employer’s establishment in Québec, that the employer is deemed to pay to the employee or that the employer pays in respect of the employee, or to the employer’s employee to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid, deemed to be paid or paid in respect of the employee from such an establishment in Québec.

The percentage to be applied to wages referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is equal to or less than $1,000,000, 2.7%,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined according to the formula

2.31% + (0.39% × A), and

iii.  in any other case, 4.26%; and

(b)  in the case of wages paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formula provided for in subparagraph ii of subparagraph a of the second paragraph, A is the quotient obtained by dividing the employer’s total payroll for the year referred to therein by $1,000,000.

If the percentage determined according to the formula provided for in subparagraph ii of subparagraph a of the second paragraph has more than two decimal places, only the first two are retained and the second is increased by one unit if the third decimal is greater than 4.

However, where the employer is an eligible employer at the time the wages are paid or deemed to be paid, where that time is included in the employer’s exemption period and where the wages are not wages that would not be wages because of paragraph a of the definition of “wages” in the first paragraph of section 33 if section 64 of the Act respecting international financial centres (chapter C‐8.3) were read as if “75%” in the first paragraph was replaced by “100%” and were read without reference to its second paragraph, no contribution is payable under this section in respect of 75% of the portion of the wages that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages paid or deemed to be paid at that time by the employer, and each of which is wages in respect of which, in a proportion of 75%, no contribution is payable under this section by reason of this paragraph.

Where the employer is a qualified corporation for a taxation year and the wages is paid or deemed to be paid in the year and in the exemption period of the qualified corporation, no contribution is payable under this section in respect of the amount obtained by multiplying 75% of the wages by the proportion determined, for the year, in accordance with section 34.1.0.1, where

(a)  the qualified corporation encloses, with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (R.R.Q., 1981, chapter R-5, r.1) it is required to file for the year, the prescribed form containing the prescribed information; and

(b)  where the qualified corporation would be a qualified corporation, within the meaning of sections 771.5 to 771.7 of the Taxation Act (chapter I-3) if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

In addition, no contribution is payable under this section

(a)  in respect of the wages paid or deemed to be paid by an employer if, at the time the wages are paid or deemed to be paid, the employer is an exempt employer other than an employer described in subparagraph i of subparagraph a.1 and if that time is included in the employer’s eligibility period;

(a.1)  in respect of 3/4 of the wages paid or deemed to be paid by an employer if

i.  at the time of payment or deemed payment of the wages, the employer is an exempt employer referred to in subparagraph iii of paragraph a of section 771.12 of the Taxation Act in respect of whom any of the conditions mentioned in subparagraphs 1 and 2 of subparagraph i of subparagraph b of the second paragraph of section 771.8.5 of that Act is met, and

ii.  the time of payment or deemed payment of the wages is included in the employer’s eligibility period;

(b)  in respect of the wages paid or deemed to be paid by an employer that carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  in respect of the wages paid or deemed to be paid by an employer that carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages to one of the employees if, for the pay period comprised in the base period in respect of which the wages relate, the employee spends 75% or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)  in respect of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee in relation to the part of the working time of the employee devoted to eligible activities of the employer, in relation to a major investment project of the employer, within the meaning assigned to those expressions by section 737.18.14 of the Taxation Act, and are paid or deemed to be paid for a pay period within a particular period covered by a qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a year; and

(e)  in respect of 3/4 of the wages paid or deemed to be paid by an employer where the wages are paid or deemed to be paid to an employee of the employer that is a qualified corporation, within the meaning of section 737.18.29 of the Taxation Act, in relation to the recognized business that the employer carries on, for a pay period comprised in the exemption period, within the meaning of section 737.18.29, applicable to that qualified corporation, and where the employer encloses the prescribed form containing the prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year.

For the purposes of subparagraphs b and c of the seventh paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraph d of the seventh paragraph, where the pay period is not included in whole in the particular period referred to therein, only the period to which the wages relate, that is within the particular period, shall be taken into account.

For the purposes of subparagraph e of the seventh paragraph, where the pay period is not wholly comprised in the exemption period referred to in that subparagraph, only the period in respect of which the wages relate that is comprised in that exemption period shall be taken into account.

However, the seventh paragraph does not apply in respect of wages paid or deemed to be paid by an excluded employer, except where, in the case of such wages referred to in subparagraph d of that paragraph in relation to a major investment project, an application in respect of the project, accompanied by the required documents, was sent to the Minister of Finance before 11 March 2003 so that no contribution would be payable under this section in respect of the wages because of that subparagraph d.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438; 2004, c. 21, s. 518; 2005, c. 1, s. 327; 2005, c. 23, s. 269; 2005, c. 38, s. 351.

2005-06-17

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of each of the following amounts:

(a)  the wages that the employer pays and that the employer is deemed to pay under the second paragraph of section 979.3 and section 1019.7 of the Taxation Act (chapter I-3) to the employer’s employee who reports for work at the employer’s establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid or deemed to be paid from such an establishment in Québec;

(b)  the wages the employer pays to a trustee or custodian in respect of an employee described in subparagraph a; and

(c)  except to the extent that it is referred to in subparagraph a, that part referred to in section 43.2 of the Taxation Act of any contribution, and of the related tax, that the employer pays to the administrator of a multi-employer insurance plan within the meaning of section 43.1 of that Act in respect of an employee described in subparagraph a.

The percentage to be applied to wages or to any other amount referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is equal to or less than $1,000,000, 2.7%,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined according to the formula

2.31% + (0.39% × A), and

iii.  in any other case, 4.26% ; and

(b)  in the case of wages or any other amount paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages or the other amount if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages, including an amount described in subparagraph c of the first paragraph, paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formula provided for in subparagraph ii of subparagraph a of the second paragraph, A is the quotient obtained by dividing the employer’s total payroll for the year referred to therein by $1,000,000.

If the percentage determined according to the formula provided for in subparagraph ii of subparagraph a of the second paragraph has more than two decimal places, only the first two are retained and the second is increased by one unit if the third decimal is greater than 4.

However, where the employer is an eligible employer at the time the wages or amount are paid or deemed to be paid, where that time is included in the employer’s exemption period and where the wages are not wages that would not be wages because of paragraph a of the definition of “wages” in the first paragraph of section 33 if section 64 of the Act respecting international financial centres (chapter C-8.3) were read with “75%” in the first paragraph replaced by “100%” and without reference to the second paragraph thereof, no contribution is payable under this section in respect of 75% of the portion of the wages or amount that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages or amounts paid or deemed to be paid at that time by the employer, and each of which is wages or an amount in respect of which, in a proportion of 75%, no contribution is payable under this section by reason of this paragraph.

Where the employer is a qualified corporation for a taxation year and the wages or the amount is paid or deemed to be paid in the year and in the exemption period of the qualified corporation, no contribution is payable under this section in respect of the amount obtained by multiplying 75% of the wages or amount by the proportion determined, for the year, in accordance with section 34.1.0.1, where

(a)  the qualified corporation encloses, with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (R.R.Q., 1981, chapter R-5, r.1) it is required to file for the year, the prescribed form containing the prescribed information; and

(b)  where the qualified corporation would be a qualified corporation, within the meaning of sections 771.5 to 771.7 of the Taxation Act (chapter I-3) if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

In addition, no contribution is payable under this section

(a)  in respect of the wages or amount paid or deemed to be paid by an employer if, at the time the wages or amount are paid or deemed to be paid, the employer is an exempt employer other than an employer described in subparagraph i of subparagraph a.1 and if that time is included in the employer’s eligibility period;

(a.1)  in respect of 3/4 of the wages or amount paid or deemed to be paid by an employer if

i.  at the time of payment or deemed payment of the wages or amount, the employer is an exempt employer referred to in subparagraph iii of paragraph a of section 771.12 of the Taxation Act in respect of whom any of the conditions mentioned in subparagraphs 1 and 2 of subparagraph i of subparagraph b of the second paragraph of section 771.8.5 of that Act is met, and

ii.  the time of payment or deemed payment of the wages or amount is included in the employer’s eligibility period;

(b)  in respect of the wages or amount paid or deemed to be paid by an employer that carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages or amount to one of the employees if, for the pay period comprised in the base period in respect of which the wages or amount relate, the employee spends 75% or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  in respect of the wages or amount paid or deemed to be paid by an employer that carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages or amount to one of the employees if, for the pay period comprised in the base period in respect of which the wages or amount relate, the employee spends 75% or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)  in respect of the wages or amount paid or deemed to be paid by an employer where the wages or amount are paid or deemed to be paid to an employee in relation to the part of the working time of the employee devoted to eligible activities of the employer, in relation to a major investment project of the employer, within the meaning assigned to those expressions by section 737.18.14 of the Taxation Act, and are paid or deemed to be paid for a pay period within a particular period covered by a qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a year; and

(e)  in respect of 3/4 of the wages or amount paid or deemed to be paid by an employer where the wages or amount are paid or deemed to be paid to an employee of the employer that is a qualified corporation, within the meaning of section 737.18.29 of the Taxation Act, in relation to the recognized business that the employer carries on, for a pay period comprised in the exemption period, within the meaning of section 737.18.29, applicable to that qualified corporation, and where the employer encloses the prescribed form containing the prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year.

For the purposes of subparagraphs b and c of the seventh paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages or amount relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraph d of the seventh paragraph, where the pay period is not included in whole in the particular period referred to therein, only the period to which the wages or amount relate, that is within the particular period, shall be taken into account.

For the purposes of subparagraph e of the seventh paragraph, where the pay period is not wholly comprised in the exemption period referred to in that subparagraph, only the period in respect of which the wages or amount relate that is comprised in that exemption period shall be taken into account.

However, the seventh paragraph does not apply in respect of wages or an amount paid or deemed to be paid by an excluded employer, except where, in the case of such wages or such an amount referred to in subparagraph d of that paragraph in relation to a major investment project, an application in respect of the project, accompanied by the required documents, was sent to the Minister of Finance before 11 March 2003 so that no contribution would be payable under this section in respect of the wages or amount because of that subparagraph d.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438; 2004, c. 21, s. 518; 2005, c. 1, s. 327; 2005, c. 23, s. 269.

2005-03-17

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of each of the following amounts:

(a)  the wages that the employer pays and that the employer is deemed to pay under the second paragraph of section 979.3 and section 1019.7 of the Taxation Act (chapter I-3) to the employer’s employee who reports for work at the employer’s establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid or deemed to be paid from such an establishment in Québec;

(b)  the wages the employer pays to a trustee or custodian in respect of an employee described in subparagraph a; and

(c)  except to the extent that it is referred to in subparagraph a, that part referred to in section 43.2 of the Taxation Act of any contribution, and of the related tax, that the employer pays to the administrator of a multi-employer insurance plan within the meaning of section 43.1 of that Act in respect of an employee described in subparagraph a.

The percentage to be applied to wages or to any other amount referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is equal to or less than $1,000,000, 2.7%,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined according to the formula

2.31% + (0.39% × A), and

iii.  in any other case, 4.26% ; and

(b)  in the case of wages or any other amount paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages or the other amount if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages, including an amount described in subparagraph c of the first paragraph, paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formula provided for in subparagraph ii of subparagraph a of the second paragraph, A is the quotient obtained by dividing the employer’s total payroll for the year referred to therein by $1,000,000.

If the percentage determined according to the formula provided for in subparagraph ii of subparagraph a of the second paragraph has more than two decimal places, only the first two are retained and the second is increased by one unit if the third decimal is greater than 4.

However, where the employer is an eligible employer at the time the wages or amount are paid or deemed to be paid, where that time is included in the employer’s exemption period and where the wages are not wages that would not be wages because of paragraph a of the definition of “wages” in the first paragraph of section 33 if section 64 of the Act respecting international financial centres (chapter C-8.3) were read with “75%” in the first paragraph replaced by “100%” and without reference to the second paragraph thereof, no contribution is payable under this section in respect of 75% of the portion of the wages or amount that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages or amounts paid or deemed to be paid at that time by the employer, and each of which is wages or an amount in respect of which, in a proportion of 75%, no contribution is payable under this section by reason of this paragraph.

Where the employer is a qualified corporation for a taxation year and the wages or the amount is paid or deemed to be paid in the year and in the exemption period of the qualified corporation, no contribution is payable under this section in respect of the amount obtained by multiplying 75% of the wages or amount by the proportion determined, for the year, in accordance with section 34.1.0.1, where

(a)  the qualified corporation encloses, with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (R.R.Q., 1981, chapter R-5, r.1) it is required to file for the year, the prescribed form containing the prescribed information; and

(b)  where the qualified corporation would be a qualified corporation, within the meaning of sections 771.5 to 771.7 of the Taxation Act (chapter I-3) if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

In addition, no contribution is payable under this section

(a)  in respect of the wages or amount paid or deemed to be paid by an employer that is an exempt employer at the time the wages or amount are paid or deemed to be paid if that time is included in the employer’s eligibility period;

(b)  in respect of the wages or amount paid or deemed to be paid by an employer that carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages or amount to one of the employees if, for the pay period comprised in the base period in respect of which the wages or amount relate, the employee spends 75% or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  in respect of the wages or amount paid or deemed to be paid by an employer that carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages or amount to one of the employees if, for the pay period comprised in the base period in respect of which the wages or amount relate, the employee spends 75% or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)  in respect of the wages or amount paid or deemed to be paid by an employer where the wages or amount are paid or deemed to be paid to an employee in relation to the part of the working time of the employee devoted to eligible activities of the employer, in relation to a major investment project of the employer, within the meaning assigned to those expressions by section 737.18.14 of the Taxation Act, and are paid or deemed to be paid for a pay period within a particular period covered by a qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a year; and

(e)  in respect of 3/4 of the wages or amount paid or deemed to be paid by an employer where the wages or amount are paid or deemed to be paid to an employee of the employer that is a qualified corporation, within the meaning of section 737.18.29 of the Taxation Act, in relation to the recognized business that the employer carries on, for a pay period comprised in the exemption period, within the meaning of section 737.18.29, applicable to that qualified corporation, and where the employer encloses the prescribed form containing the prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year.

For the purposes of subparagraphs b and c of the seventh paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages or amount relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraph d of the seventh paragraph, where the pay period is not included in whole in the particular period referred to therein, only the period to which the wages or amount relate, that is within the particular period, shall be taken into account.

For the purposes of subparagraph e of the seventh paragraph, where the pay period is not wholly comprised in the exemption period referred to in that subparagraph, only the period in respect of which the wages or amount relate that is comprised in that exemption period shall be taken into account.

However, the seventh paragraph does not apply in respect of wages or an amount paid or deemed to be paid by an excluded employer, except where, in the case of such wages or such an amount referred to in subparagraph d of that paragraph in relation to a major investment project, an application in respect of the project, accompanied by the required documents, was sent to the Minister of Finance before 11 March 2003 so that no contribution would be payable under this section in respect of the wages or amount because of that subparagraph d.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438; 2004, c. 21, s. 518; 2005, c. 1, s. 327.

2004-11-03

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of each of the following amounts:

(a)  the wages that the employer pays and that the employer is deemed to pay under the second paragraph of section 979.3 and section 1019.7 of the Taxation Act (chapter I-3) to the employer’s employee who reports for work at the employer’s establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid or deemed to be paid from such an establishment in Québec ;

(b)  the wages the employer pays to a trustee or custodian in respect of an employee described in subparagraph a ; and

(c)  except to the extent that it is referred to in subparagraph a, that part referred to in section 43.2 of the Taxation Act of any contribution, and of the related tax, that the employer pays to the administrator of a multi-employer insurance plan within the meaning of section 43.1 of that Act in respect of an employee described in subparagraph a.

The percentage to be applied to wages or to any other amount referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is equal to or less than $1,000,000, 2.7%,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined according to the formula

2.31% + (0.39% × A), and

iii.  in any other case, 4.26% ; and

(b)  in the case of wages or any other amount paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages or the other amount if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages, including an amount described in subparagraph c of the first paragraph, paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formula provided for in subparagraph ii of subparagraph a of the second paragraph, A is the quotient obtained by dividing the employer’s total payroll for the year referred to therein by $1,000,000.

If the percentage determined according to the formula provided for in subparagraph ii of subparagraph a of the second paragraph has more than two decimal places, only the first two are retained and the second is increased by one unit if the third decimal is greater than 4.

However, where the employer is an eligible employer at the time the wages or amount are paid or deemed to be paid, where that time is included in the employer’s exemption period and where the wages are not wages that would not be wages because of paragraph a of the definition of “wages” in the first paragraph of section 33 if section 64 of the Act respecting international financial centres (chapter C-8.3) were read with “75%” in the first paragraph replaced by “100%” and without reference to the second paragraph thereof, no contribution is payable under this section in respect of 75% of the portion of the wages or amount that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages or amounts paid or deemed to be paid at that time by the employer, and each of which is wages or an amount in respect of which, in a proportion of 75%, no contribution is payable under this section by reason of this paragraph.

Where the employer is a qualified corporation for a taxation year and the wages or the amount is paid or deemed to be paid in the year and in the exemption period of the qualified corporation, no contribution is payable under this section in respect of the amount obtained by multiplying 75% of the wages or amount by the proportion determined, for the year, in accordance with section 34.1.0.1, where

(a)  the qualified corporation encloses, with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (R.R.Q., 1981, chapter R-5, r.1) it is required to file for the year, the prescribed form containing the prescribed information; and

(b)  where the qualified corporation would be a qualified corporation, within the meaning of sections 771.5 to 771.7 of the Taxation Act (chapter I-3) if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

In addition, no contribution is payable under this section

(a)  in respect of the wages or amount paid or deemed to be paid by an employer that is an exempt employer at the time the wages or amount are paid or deemed to be paid if that time is included in the employer’s eligibility period;

(b)  in respect of the wages or amount paid or deemed to be paid by an employer that carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages or amount to one of the employees if, for the pay period comprised in the base period in respect of which the wages or amount relate, the employee spends 75% or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  in respect of the wages or amount paid or deemed to be paid by an employer that carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages or amount to one of the employees if, for the pay period comprised in the base period in respect of which the wages or amount relate, the employee spends 75% or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)  in respect of the wages or amount paid or deemed to be paid by an employer where the wages or amount are paid or deemed to be paid to an employee in relation to the part of the working time of the employee devoted to eligible activities of the employer, in relation to a major investment project of the employer, within the meaning assigned to those expressions by section 737.18.14 of the Taxation Act, and are paid or deemed to be paid for a pay period within a particular period covered by a qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a year; and

(e)  in respect of 3/4 of the wages or amount paid or deemed to be paid by an employer where the wages or amount are paid or deemed to be paid to an employee of the employer that is a qualified corporation, within the meaning of section 737.18.29 of the Taxation Act, in relation to the recognized business that the employer carries on, for a pay period comprised in the exemption period, within the meaning of section 737.18.29, applicable to that qualified corporation, and where the employer encloses the prescribed form containing the prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year.

For the purposes of subparagraphs b and c of the seventh paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages or amount relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraph d of the seventh paragraph, where the pay period is not included in whole in the particular period referred to therein, only the period to which the wages or amount relate, that is within the particular period, shall be taken into account.

For the purposes of subparagraph e of the seventh paragraph, where the pay period is not wholly comprised in the exemption period referred to in that subparagraph, only the period in respect of which the wages or amount relate that is comprised in that exemption period shall be taken into account.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438; 2004, c. 21, s. 518.

2003-12-10

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of each of the following amounts:

(a)  the wages that the employer pays and that the employer is deemed to pay under the second paragraph of section 979.3 and section 1019.7 of the Taxation Act (chapter I-3) to the employer’s employee who reports for work at the employer’s establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid or deemed to be paid from such an establishment in Québec ;

(b)  the wages the employer pays to a trustee or custodian in respect of an employee described in subparagraph a ; and

(c)  except to the extent that it is referred to in subparagraph a, that part referred to in section 43.2 of the Taxation Act of any contribution, and of the related tax, that the employer pays to the administrator of a multi-employer insurance plan within the meaning of section 43.1 of that Act in respect of an employee described in subparagraph a.

The percentage to be applied to wages or to any other amount referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is equal to or less than $1,000,000, 2.7 %,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined according to the formula

2.31 % + (0.39 % × A), and

iii.  in any other case, 4.26 % ; and

(b)  in the case of wages or any other amount paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages or the other amount if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages, including an amount described in subparagraph c of the first paragraph, paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formula provided for in subparagraph ii of subparagraph a of the second paragraph, A is the quotient obtained by dividing the employer’s total payroll for the year referred to therein by $1,000,000.

If the percentage determined according to the formula provided for in subparagraph ii of subparagraph a of the second paragraph has more than two decimal places, only the first two are retained and the second is increased by one unit if the third decimal is greater than 4.

However, where the employer is an eligible employer at the time the wages or amount are paid or deemed to be paid and where that time is included in the employer’s exemption period, no contribution is payable under this section in respect of the portion of the wages or amount that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages or amounts paid or deemed to be paid at that time by the employer, in respect of which no contribution is payable under this section by reason of this paragraph.

Where the employer is a qualified corporation for a taxation year and the salary or the amount is paid or deemed to be paid in the year and in the exemption period of the qualified corporation, no contribution is payable under this section in respect of the proportion of the salary or amount that is equal to the proportion determined, for the year, in accordance with section 34.1.0.1, where

(a)  the qualified corporation encloses, with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (R.R.Q., 1981, chapter R-5, r.1) it is required to file for the year, the prescribed form containing the prescribed information; and

(b)  where the qualified corporation would be a qualified corporation, within the meaning of sections 771.5 to 771.7 of the Taxation Act (chapter I-3) if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

In addition, no contribution is payable under this section in respect of the wages or amount paid or deemed to be paid by an employer where

(a)  the employer is an exempt employer at the time the wages or amount are paid or deemed to be paid and that time is included in the employer’s eligibility period;

(b)  the employer carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the recognized business, of the wages or amount to one of the employees and, for the pay period comprised in the base period in respect of which the wages or amount relate, the employee spends 75 % or more of working time performing duties within the international trade zone, within the meaning of that section, in the course of the recognized business;

(c)  the employer carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, comprised in the base period in relation to the business, of the wages or amount to one of the employees and, for the pay period comprised in the base period in respect of which the wages or amount relate, the employee spends 75 % or more of working time performing duties relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone;

(d)   the wages or amount are paid or deemed to be paid to an employee in relation to the part of the working time of the employee devoted to eligible activities of the employer, in relation to a major investment project of the employer, within the meaning assigned to those expressions by section 737.18.14 of the Taxation Act, and are paid or deemed to be paid for a pay period within a particular period covered by a qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a year;

(e)  the wages or amount are paid or deemed to be paid to an employee of the employer that is a qualified corporation, within the meaning of section 737.18.29 of the Taxation Act, in relation to the recognized business that the employer carries on, for a pay period comprised in the exemption period, within the meaning of section 737.18.29, applicable to that qualified corporation, and the employer encloses the prescribed form containing the prescribed information with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan that the employer is required to file for the year.

For the purposes of subparagraphs b and c of the seventh paragraph, where a pay period is not wholly comprised in the base period in relation to the employer’s recognized business or, where applicable, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages or amount relate that is comprised in the base period shall be taken into account.

For the purposes of subparagraph d of the seventh paragraph, where the pay period is not included in whole in the particular period referred to therein, only the period to which the wages or amount relate, that is within the particular period, shall be taken into account.

For the purposes of subparagraph e of the seventh paragraph, where the pay period is not wholly comprised in the exemption period referred to in that subparagraph, only the period in respect of which the wages or amount relate that is comprised in that exemption period shall be taken into account.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329; 2003, c. 9, s. 438.

2002-10-17

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of each of the following amounts:

(a)  the wages that the employer pays and that the employer is deemed to pay under the second paragraph of section 979.3 and section 1019.7 of the Taxation Act (chapter I-3) to the employer’s employee who reports for work at the employer’s establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid or deemed to be paid from such an establishment in Québec ;

(b)  the wages the employer pays to a trustee or custodian in respect of an employee described in subparagraph a ; and

(c)  except to the extent that it is referred to in subparagraph a, that part referred to in section 43.2 of the Taxation Act of any contribution, and of the related tax, that the employer pays to the administrator of a multi-employer insurance plan within the meaning of section 43.1 of that Act in respect of an employee described in subparagraph a.

The percentage to be applied to wages or to any other amount referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is equal to or less than $1,000,000, 2.7 %,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined according to the formula

2.31 % + (0.39 % × A), and

iii.  in any other case, 4.26 % ; and

(b)  in the case of wages or any other amount paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages or the other amount if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages, including an amount described in subparagraph c of the first paragraph, paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formula provided for in subparagraph ii of subparagraph a of the second paragraph, A is the quotient obtained by dividing the employer’s total payroll for the year referred to therein by $1,000,000.

If the percentage determined according to the formula provided for in subparagraph ii of subparagraph a of the second paragraph has more than two decimal places, only the first two are retained and the second is increased by one unit if the third decimal is greater than 4.

However, where the employer is an eligible employer at the time the wages or amount are paid or deemed to be paid and where that time is included in the employer’s exemption period, no contribution is payable under this section in respect of the portion of the wages or amount that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages or amounts paid or deemed to be paid at that time by the employer, in respect of which no contribution is payable under this section by reason of this paragraph.

Where the employer is a qualified corporation for a taxation year and the salary or the amount is paid or deemed to be paid in the year and in the exemption period of the qualified corporation, no contribution is payable under this section in respect of the proportion of the salary or amount that is equal to the proportion determined, for the year, in accordance with section 34.1.0.1, where

(a)  the qualified corporation encloses, with the information return referred to in section 3 of the Regulation respecting contributions to the Québec Health Insurance Plan (R.R.Q., 1981, chapter R-5, r.1) it is required to file for the year, the prescribed form containing the prescribed information; and

(b)  where the qualified corporation would be a qualified corporation, within the meaning of sections 771.5 to 771.7 of the Taxation Act (chapter I-3) if that section 771.5 were read without reference to paragraph e thereof, it elected irrevocably, in prescribed form, not to be considered as such a qualified corporation.

In addition, no contribution is payable under this section in respect of the wages or amount paid or deemed to be paid by an employer where

(a)  the employer is an exempt employer at the time the wages or amount are paid or deemed to be paid and that time is included in the employer’s eligibility period;

(b)  the employer carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, within the period covered by the certificate in relation to that recognized business which cannot begin before 10 March 1999 nor end after 31 December 2010, of the wages or amount to one of the employees, and, for the pay period related to the wages or amount, which is within the period covered by the certificate, the employee spends at least 75% of the working time in carrying on work within the international trade zone, within the meaning of that section, in respect of the recognized business;

(c)  the employer carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, within the period covered by the certificate in relation to that business which cannot begin before 14 March 2000 nor end after 31 December 2010, of the wages or amount to one of the employees, and, for the pay period related to the wages or amount, which is within the period covered by the certificate, the employee spends at least 75% of the working time in carrying on work relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone; and

(d)   the wages or amount are paid or deemed to be paid to an employee in relation to the part of the working time of the employee devoted to eligible activities of the employer, in relation to a major investment project of the employer, within the meaning assigned to those expressions by section 737.18.14 of the Taxation Act, and are paid or deemed to be paid for a pay period within a particular period covered by a qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a year.

For the purposes of subparagraphs b and c of the sixth paragraph, where a pay period is not included in whole in the period covered by the certificate in relation to the employer’s recognized business or, as the case may be, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages or amount relate, which is within the period covered by the certificate, may be taken into account.

For the purposes of subparagraph d of the sixth paragraph, where the pay period is not included in whole in the particular period referred to therein, only the period to which the wages or amount relate, that is within the particular period, shall be taken into account.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147; 2002, c. 40, s. 329.

2002-06-08

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of each of the following amounts:

(a)  the wages that the employer pays and that the employer is deemed to pay under the second paragraph of section 979.3 and section 1019.7 of the Taxation Act (chapter I-3) to the employer’s employee who reports for work at the employer’s establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid or deemed to be paid from such an establishment in Québec ;

(b)  the wages the employer pays to a trustee or custodian in respect of an employee described in subparagraph a ; and

(c)  except to the extent that it is referred to in subparagraph a, that part referred to in section 43.2 of the Taxation Act of any contribution, and of the related tax, that the employer pays to the administrator of a multi-employer insurance plan within the meaning of section 43.1 of that Act in respect of an employee described in subparagraph a.

The percentage to be applied to wages or to any other amount referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is equal to or less than $1,000,000, 2.7 %,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined according to the formula

2.31 % + (0.39 % × A), and

iii.  in any other case, 4.26 % ; and

(b)  in the case of wages or any other amount paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages or the other amount if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages, including an amount described in subparagraph c of the first paragraph, paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formula provided for in subparagraph ii of subparagraph a of the second paragraph, A is the quotient obtained by dividing the employer’s total payroll for the year referred to therein by $1,000,000.

If the percentage determined according to the formula provided for in subparagraph ii of subparagraph a of the second paragraph has more than two decimal places, only the first two are retained and the second is increased by one unit if the third decimal is greater than 4.

However, where the employer is an eligible employer at the time the wages or amount are paid or deemed to be paid and where that time is included in the employer’s exemption period, no contribution is payable under this section in respect of the portion of the wages or amount that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages or amounts paid or deemed to be paid at that time by the employer, in respect of which no contribution is payable under this section by reason of this paragraph.

In addition, no contribution is payable under this section in respect of the wages or amount paid or deemed to be paid by an employer where

(a)  the employer is an exempt employer at the time the wages or amount are paid or deemed to be paid and that time is included in the employer’s eligibility period;

(b)  the employer carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, within the period covered by the certificate in relation to that recognized business which cannot begin before 10 March 1999 nor end after 31 December 2010, of the wages or amount to one of the employees, and, for the pay period related to the wages or amount, which is within the period covered by the certificate, the employee spends at least 75% of the working time in carrying on work within the international trade zone, within the meaning of that section, in respect of the recognized business;

(c)  the employer carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, within the period covered by the certificate in relation to that business which cannot begin before 14 March 2000 nor end after 31 December 2010, of the wages or amount to one of the employees, and, for the pay period related to the wages or amount, which is within the period covered by the certificate, the employee spends at least 75% of the working time in carrying on work relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone; and

(d)   the wages or amount are paid or deemed to be paid to an employee in relation to the part of the working time of the employee devoted to eligible activities of the employer, in relation to a major investment project of the employer, within the meaning assigned to those expressions by section 737.18.14 of the Taxation Act, and are paid or deemed to be paid for a pay period within a particular period covered by a qualification certificate issued by the Minister of Finance, in relation to the major investment project, in respect of a year.

For the purposes of subparagraphs b and c of the sixth paragraph, where a pay period is not included in whole in the period covered by the certificate in relation to the employer’s recognized business or, as the case may be, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages or amount relate, which is within the period covered by the certificate, may be taken into account.

For the purposes of subparagraph d of the sixth paragraph, where the pay period is not included in whole in the particular period referred to therein, only the period to which the wages or amount relate, that is within the particular period, shall be taken into account.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248; 2002, c. 9, s. 147.

2001-12-20

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of each of the following amounts:

(a)  the wages that the employer pays and that the employer is deemed to pay under the second paragraph of section 979.3 and section 1019.7 of the Taxation Act (chapter I-3) to the employer’s employee who reports for work at the employer’s establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid or deemed to be paid from such an establishment in Québec ;

(b)  the wages the employer pays to a trustee or custodian in respect of an employee described in subparagraph a ; and

(c)  except to the extent that it is referred to in subparagraph a, that part referred to in section 43.2 of the Taxation Act of any contribution, and of the related tax, that the employer pays to the administrator of a multi-employer insurance plan within the meaning of section 43.1 of that Act in respect of an employee described in subparagraph a.

The percentage to be applied to wages or to any other amount referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is equal to or less than $1,000,000, 2.7 %,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined according to the formula

2.31 % + (0.39 % × A), and

iii.  in any other case, 4.26 % ; and

(b)  in the case of wages or any other amount paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages or the other amount if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages, including an amount described in subparagraph c of the first paragraph, paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formula provided for in subparagraph ii of subparagraph a of the second paragraph, A is the quotient obtained by dividing the employer’s total payroll for the year referred to therein by $1,000,000.

If the percentage determined according to the formula provided for in subparagraph ii of subparagraph a of the second paragraph has more than two decimal places, only the first two are retained and the second is increased by one unit if the third decimal is greater than 4.

However, where the employer is an eligible employer at the time the wages or amount are paid or deemed to be paid and where that time is included in the employer’s exemption period, no contribution is payable under this section in respect of the portion of the wages or amount that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages or amounts paid or deemed to be paid at that time by the employer, in respect of which no contribution is payable under this section by reason of this paragraph.

In addition, no contribution is payable under this section in respect of the wages or amount paid or deemed to be paid by an employer where

(a)  the employer is an exempt employer at the time the wages or amount are paid or deemed to be paid and that time is included in the employer’s eligibility period ; and

(b)  the employer carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time of payment or deemed payment, within the period covered by the certificate in relation to that recognized business which cannot begin before 10 March 1999 nor end after 31 December 2010, of the wages or amount to one of the employees, and, for the pay period related to the wages or amount, which is within the period covered by the certificate, the employee spends at least 75% of the working time in carrying on work within the international trade zone, within the meaning of that section, in respect of the recognized business ; and

(c)  the employer carries on a business that is referred to in section 1029.8.36.0.38.1 of the Taxation Act, at the time of payment or deemed payment, within the period covered by the certificate in relation to that business which cannot begin before 14 March 2000 nor end after 31 December 2010, of the wages or amount to one of the employees, and, for the pay period related to the wages or amount, which is within the period covered by the certificate, the employee spends at least 75% of the working time in carrying on work relating to the business activities that, because of section 1029.8.36.0.38.2 of that Act, are deemed to be carried on within the international trade zone.

For the purposes of subparagraphs b and c of the sixth paragraph, where a pay period is not included in whole in the period covered by the certificate in relation to the employer’s recognized business or, as the case may be, in relation to the employer’s business referred to in section 1029.8.36.0.38.1 of the Taxation Act, only the period in respect of which the wages or amount relate, which is within the period covered by the certificate, may be taken into account.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270; 2001, c. 51, s. 248.

2000-11-15

34. Every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to the percentage, provided for in the second paragraph, of each of the following amounts:

(a)  the wages that the employer pays and that the employer is deemed to pay under the second paragraph of section 979.3 and section 1019.7 of the Taxation Act (chapter I-3) to the employer’s employee who reports for work at the employer’s establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of the employer, are paid or deemed to be paid from such an establishment in Québec ;

(b)  the wages the employer pays to a trustee or custodian in respect of an employee described in subparagraph a ; and

(c)  except to the extent that it is referred to in subparagraph a, that part referred to in section 43.2 of the Taxation Act of any contribution, and of the related tax, that the employer pays to the administrator of a multi-employer insurance plan within the meaning of section 43.1 of that Act in respect of an employee described in subparagraph a.

The percentage to be applied to wages or to any other amount referred to in the first paragraph is,

(a)  except where subparagraph b applies,

i.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is equal to or less than $1,000,000, 2.7 %,

ii.  where the employer is a specified employer for the year in which the employer pays or is deemed to pay the wages or the other amount, and the employer’s total payroll for that year is more than $1,000,000 but less than $5,000,000, the percentage determined according to the formula

2.31 % + (0.39 % × A), and

iii.  in any other case, 4.26 % ; and

(b)  in the case of wages or any other amount paid or deemed to be paid by the employer as a member of a particular partnership, the percentage that would be determined under subparagraph a in respect of the wages or the other amount if

i.  in the definition of “employer” in the first paragraph of section 33, “person” included a partnership, and

ii.  wages, including an amount described in subparagraph c of the first paragraph, paid or deemed to be paid by a particular employer as a member of the particular partnership had been paid or deemed to be paid by that partnership and not by the particular employer.

In the formula provided for in subparagraph ii of subparagraph a of the second paragraph, A is the quotient obtained by dividing the employer’s total payroll for the year referred to therein by $1,000,000.

If the percentage determined according to the formula provided for in subparagraph ii of subparagraph a of the second paragraph has more than two decimal places, only the first two are retained and the second is increased by one unit if the third decimal is greater than 4.

However, where the employer is an eligible employer at the time the wages or amount are paid or deemed to be paid and where that time is included in the employer’s exemption period, no contribution is payable under this section in respect of the portion of the wages or amount that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages or amounts paid or deemed to be paid at that time by the employer, in respect of which no contribution is payable under this section by reason of this paragraph.

In addition, no contribution is payable under this section in respect of the wages or amount paid or deemed to be paid by an employer where

(a)  the employer is an exempt employer at the time the wages or amount are paid or deemed to be paid and that time is included in the employer’s eligibility period ; and

(b)  the employer carries on a recognized business, within the meaning of section 1029.8.36.0.38 of the Taxation Act, at the time, within the period covered by the certificate in relation to that recognized business which cannot begin before 10 March 1999 nor end after 1 January 2010, at which the wages or amount are paid or deemed to be paid to one of the employees and the duties of the employee relating to the employment, for the pay period within the period covered by the certificate in respect of which the wages or amount relate, consist in carrying on work in the international trade zone, within the meaning of that section, in respect of the recognized business, in a proportion of at least 75 %.

For the purposes of subparagraph b of the sixth paragraph, where a pay period is not included in whole in the period covered by the certificate in relation to the employer’s recognized business, only the period in respect of which the wages or amount relate, which is within the period covered by the certificate, may be taken into account.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285; 2000, c. 39, s. 270.

1999-12-20

34. On the dates, for the periods and according to the terms and conditions prescribed in section 1015 of the Taxation Act (chapter I-3), every employer, except a prescribed employer, shall pay to the Minister of Revenue a contribution equal to 4.26 % of the wages that he pays and that he is deemed to pay under the second paragraph of section 979.3 and section 1019.7 of the said Act to his employee who reports for work at his establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of his employer, are paid or deemed paid from such an establishment in Québec, of the wages the employer pays to a trustee or custodian in respect of such an employee and, except to the extent that it is contemplated by this section, of that part referred to in section 43.2 of the said Act of any contribution, and of the related tax, he pays to the administrator of a multi-employer insurance plan within the meaning of section 43.1 of the said Act in respect of such an employee.

However, where the employer is an eligible employer at the time the wages or amount are paid or deemed to be paid and where, in respect of such an employer the first taxation year of which began after 25 March 1997, that time is included in the employer’s exemption period, no contribution is payable under this section in respect of the portion of the wages or amount that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages or amounts paid or deemed to be paid at that time by the employer, in respect of which no contribution is payable under this section by reason of this paragraph.

In addition, if the employer is an exempt employer at the time the wages or amount are paid or deemed to be paid, and where that time is included in the employer’s eligibility period, no contribution is payable under this section in respect of those wages or that amount.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372; 1999, c. 83, s. 285.

1997-12-19

34. On the dates, for the periods and according to the terms and conditions prescribed in section 1015 of the Taxation Act (chapter I-3), every employer shall pay to the Minister of Revenue a contribution equal to 4.26 % of the wages that he pays and that he is deemed to pay under the second paragraph of section 979.3 and section 1019.7 of the said Act to his employee who reports for work at his establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of his employer, are paid or deemed paid from such an establishment in Québec, of the wages the employer pays to a trustee or custodian in respect of such an employee and, except to the extent that it is contemplated by this section, of that part referred to in section 43.2 of the said Act of any contribution, and of the related tax, he pays to the administrator of a multi-employer insurance plan within the meaning of section 43.1 of the said Act in respect of such an employee.

However, where the employer is an eligible employer at the time the wages or amount are paid or deemed to be paid and where, in respect of such an employer the first taxation year of which began after 25 March 1997, that time is included in the employer’s exemption period, no contribution is payable under this section in respect of the portion of the wages or amount that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages or amounts paid or deemed to be paid at that time by the employer, in respect of which no contribution is payable under this section by reason of this paragraph.

In addition, if the employer is an exempt employer at the time the wages or amount are paid or deemed to be paid, and where that time is included in the employer’s eligibility period, no contribution is payable under this section in respect of those wages or that amount.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316; 1997, c. 85, s. 372.

1997-05-22

34. On the dates, for the periods and according to the terms and conditions prescribed in section 1015 of the Taxation Act (chapter I-3), every employer shall pay to the Minister of Revenue a contribution equal to 4.26 % of the wages that he pays and that he is deemed to pay under the second paragraph of section 979.3 and section 1015.2 of the said Act to his employee who reports for work at his establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of his employer, are paid or deemed paid from such an establishment in Québec, of the wages the employer pays to a trustee or custodian in respect of such an employee and, except to the extent that it is contemplated by this section, of that part referred to in section 43.2 of the said Act of any contribution, and of the related tax, he pays to the administrator of a multi-employer insurance plan within the meaning of section 43.1 of the said Act in respect of such an employee.

However, where the employer is an eligible employer at the time the wages or amount are paid or deemed to be paid, no contribution is payable under this section in respect of the portion of the wages or amount that does not exceed the amount by which the employer exemption at that time exceeds the aggregate of the other wages or amounts paid or deemed to be paid at that time by the employer, in respect of which no contribution is payable under this section by reason of this paragraph.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283; 1997, c. 14, s. 316.

1995-12-15

34. On the dates, for the periods and according to the terms and conditions prescribed in section 1015 of the Taxation Act (chapter I-3), every employer shall pay to the Minister of Revenue a contribution equal to 4.26 % of the wages that he pays and that he is deemed to pay under the second paragraph of section 979.3 and section 1015.2 of the said Act to his employee who reports for work at his establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of his employer, are paid or deemed paid from such an establishment in Québec, of the wages the employer pays to a trustee or custodian in respect of such an employee and, except to the extent that it is contemplated by this section, of that part referred to in section 43.2 of the said Act of any contribution, and of the related tax, he pays to the administrator of a multi-employer insurance plan within the meaning of section 43.1 of the said Act in respect of such an employee.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217; 1995, c. 63, s. 283.

1995-01-30

34. On the dates, for the periods and according to the terms and conditions prescribed in section 1015 of the Taxation Act (chapter I-3), every employer shall pay to the Minister of Revenue a contribution equal to 3.75 % of the wages that he pays and that he is deemed to pay under the second paragraph of section 979.3 and section 1015.2 of the said Act to his employee who reports for work at his establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of his employer, are paid or deemed paid from such an establishment in Québec of such an employee and, except to the extent that it is contemplated by this section, of that part referred to in section 43.2 of the said Act of any contribution, and of the related tax, he pays to the administrators of a multi-employer insurance plan within the meaning of section 43.1 of the said Act in respect of such an employee.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219; 1995, c. 1, s. 217.

1993-12-17

34. On the dates, for the periods and according to the terms and conditions prescribed in section 1015 of the Taxation Act (chapter I-3), every employer shall pay to the Minister of Revenue a contribution equal to 3.75 % of the wages that he pays and that he is deemed to pay under the second paragraph of section 979.3 and section 1015.2 of the said Act to his employee who reports for work at his establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of his employer, are paid or deemed paid from such an establishment in Québec and, except to the extent that it is contemplated by this section, of that part referred to in section 43.2 of the said Act of any contribution, and of the related tax, he pays to the administrators of a multi-employer insurance plan within the meaning of section 43.1 of the said Act in respect of such an employee.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218; 1993, c. 64, s. 219.

1992-03-18

34. On the dates, for the periods and according to the terms and conditions prescribed in section 1015 of the Taxation Act (chapter I-3), every employer shall pay to the Minister of Revenue a contribution equal to 3.75 % of the wages that he pays and that he is deemed to pay under the second paragraph of section 979.3 and section 1015.2 of the said Act to his employee who reports for work at his establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of his employer, are paid or deemed paid from such an establishment in Québec.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107; 1992, c. 1, s. 218.

1991-05-21

34. On the dates, for the periods and according to the terms and conditions prescribed in section 1015 of the Taxation Act (chapter I-3), every employer shall pay to the Minister of Revenue a contribution equal to 3 % of the wages that he pays and that he is deemed to pay under the second paragraph of section 979.3 and section 1015.2 of the Taxation Act to his employee who reports for work at his establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of his employer, are paid or deemed paid from such an establishment in Québec.

Where wages are paid or deemed paid after 26 April 1990, the amount determined under the first paragraph in respect of such wages shall be increased by 15 %.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229; 1991, c. 8, s. 107.

1990-04-11

34. On the dates, for the periods and according to the terms and conditions prescribed in section 1015 of the Taxation Act (chapter I-3), every employer shall pay to the Minister of Revenue a contribution equal to 3 % of the wages that he pays and that he is deemed to pay under the second paragraph of section 979.3 and section 1015.2 of the Taxation Act to his employee who reports for work at his establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of his employer, are paid or deemed paid from such an establishment in Québec.

Where wages are paid or deemed paid after 16 May 1989, the amount determined under the first paragraph in respect of such wages shall be increased by 12 %.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156; 1990, c. 7, s. 229.

1988-03-31

34. On the dates, for the periods and according to the terms and conditions prescribed in section 1015 of the Taxation Act (chapter I-3), every employer shall pay to the Minister of Revenue a contribution equal to 3 % of the wages that he pays and that he is deemed to pay under the second paragraph of section 979.3 and section 1015.2 of the Taxation Act to his employee who reports for work at his establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of his employer, are paid or deemed paid from such an establishment in Québec.

Where wages are paid or deemed paid after 1 May 1986, the amount determined under the first paragraph in respect of such wages shall be increased by 7.25 %.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98; 1988, c. 4, s. 156.

1987-04-15

34. Every employer, on the date and in the manner prescribed, shall pay to the Minister of Revenue a contribution equal to 3% of the wages that he pays and that he is deemed to pay under the second paragraph of section 979.3 and section 1015.2 of the Taxation Act (chapter I-3) to his employee who reports for work in his establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of his employer, are paid or deemed paid from such an establishment in Québec.

Where wages are paid or deemed paid after 1 May 1986, the amount determined under the first paragraph in respect of such wages shall be increased by 7.25%.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178; 1987, c. 21, s. 98.

1985-06-20

34. Every employer, on the date and in the manner prescribed, shall pay to the Minister of Revenue a contribution equal to 3% of the wages that he pays and that he is deemed to pay under the second paragraph of section 979.3 and section 1015.2 of the Taxation Act (chapter I-3) to his employee who reports for work in his establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of his employer, are paid or deemed paid from such an establishment in Québec.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13; 1985, c. 25, s. 178.

1983-12-21

34. Every employer, on the date and in the manner prescribed, shall pay to the Minister of Revenue a contribution equal to 3% of the wages that he pays and that he is deemed to pay under section 1015.2 of the Taxation Act (chapter I-3) to his employee who reports for work in his establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of his employer, are paid or deemed paid from such an establishment in Québec.

1978, c. 70, s. 10; 1981, c. 12, s. 27; 1983, c. 43, s. 13.

1981-06-18

34. Every employer, on the date and in the manner prescribed, shall pay to the Minister of Revenue a contribution equal to 3% of the wages that he pays to his employee who reports for work in his establishment in Québec or to whom those wages, if the employee is not required to report for work at an establishment of his employer, are paid from such an establishment in Québec.

1978, c. 70, s. 10; 1981, c. 12, s. 27.

1978-05-25

34. Every employer, on the date and in the manner prescribed, shall pay to the Minister of Revenue a contribution equal to 1.5% of the wages that he pays to his employee who reports for work in his establishment in Québec or to whom such wages, if the employee is not required to report for work at an establishement of his employer, is paid from such an establishment in Québec.

1978, c. 70, s. 10.