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

Section 34.1.15 Disposition versions

2015-10-26

34.1.15. For the purposes of this subdivision, the rules set out in the second paragraph apply where, in a particular year, there is

(a)  a merger of two or more corporations (each of which is referred to in subparagraph a of the second paragraph as a “former employer”) that are replaced to form one corporation (in that subparagraph a referred to as the “new employer”), or the formation of a new employer that is a corporation or partnership that immediately succeeds an employer (in that subparagraph a referred to as the “former employer”);

(b)  a transfer of property belonging or having belonged to a particular corporation or partnership (in this subparagraph and in subparagraph b of the second paragraph referred to as the “former employer”) made, as part of the winding-up or dissolution of the former employer or of a series of transactions or events including the winding-up or dissolution, in favour of another person or partnership (in that subparagraph b referred to as the “new employer”) that, immediately after the transfer, would be associated with the former employer according to the rules set out in the second paragraph of section 33.0.2, with the necessary modifications, if any relevant factor to consider for that purpose, with respect to the ownership of a share of the capital stock of the particular corporation or of an interest in the particular partnership or with respect to the holding of a right relating to such a share or to such an interest, were established on the basis of the situation existing immediately before the beginning of the winding-up or dissolution or of the series of transactions or events and, where applicable, if the former employer existed immediately after the transfer; or

(c)  a transfer of a business or part of a business from a corporation or a partnership (in subparagraph c of the second paragraph referred to as the “vendor”), other than a transfer of property to which subparagraph b applies, to another person or partnership (in that subparagraph c referred to as the “purchaser”).

The rules to which the first paragraph refers are as follows:

(a)  in the case provided for in subparagraph a of that paragraph,

i.  for the purpose of determining the amount described in subparagraph a of the first paragraph of section 34.1.12 in relation to the new employer and the former employer, wages paid or deemed to be paid to an eligible employee by the former employer for a period of the particular year that precedes the merger or the formation of the new employer are deemed to be wages paid or deemed to be paid for that period by the new employer to an eligible employee and not to be paid or deemed to be paid by the former employer,

ii.  an eligible employee of the former employer qualifies as an eligible employee of the new employer if the employee holds, after the merger or formation, full-time recognized employment requiring at least 26 hours of work per week,

iii.  where a former employer has a base year preceding the particular year, the new employer’s base year is deemed to be the year that precedes the particular year, and where no former employer has a base year preceding the particular year, for the purpose of determining the new employer’s base year, the new employer is deemed to have carried on a business during any month of the particular year during which a business was carried on by a former employer,

iv.  for the purpose of determining the amount described in subparagraph b or c of the first paragraph of section 34.1.12 in relation to the new employer, where the new employer’s base year is deemed to be the year preceding the particular year, wages paid or deemed to be paid by a former employer that has a base year preceding the particular year to an employee in the part of the particular year that precedes the merger or formation and the proportion of wages paid or deemed to be paid by a former employer that does not have a base year preceding the particular year to an employee in the part of the particular year that precedes the merger or formation that the number of days in the particular year that precede the merger or formation is of the number of days in the particular year during which the former employer carried on a business, are deemed to be wages paid or deemed to be paid by the new employer to an employee in the particular year, and any of the following are deemed to be wages paid or deemed to be paid by the new employer to an employee in the new employer’s base year:

(1)  wages paid or deemed to be paid by a former employer that has a base year preceding the particular year to an employee in the former employer’s base year,

(2)  the proportion of wages paid or deemed to be paid by a former employer that does not have a base year preceding the particular year to an employee in the part of the particular year that precedes the merger or formation that the number of days in the particular year that precede the merger or formation is of the number of days in the particular year during which the former employer carried on a business, or

(3)  wages paid or deemed to be paid by the new employer to an employee of a former employer that does not have a base year preceding the particular year, or to an employee substituted for such an employee, in the part of the particular year that begins at the time of the merger or formation, and

v.  for the purpose of determining the amount described in subparagraph b or c of the first paragraph of section 34.1.12 in relation to the new employer, where the new employer’s base year is the particular year, the proportion of wages paid or deemed to be paid by a former employer to an employee in the part of the particular year that precedes the merger or formation that the number of days in the particular year that precede the merger or formation is of the number of days in the particular year during which the former employer carried on a business is deemed to be wages paid or deemed to be paid by the new employer to an employee in the new employer’s base year;

(b)  in the case provided for in subparagraph b of that paragraph,

i.  for the purpose of determining the amount described in subparagraph a of the first paragraph of section 34.1.12 in relation to the new employer and the former employer, wages paid or deemed to be paid to an eligible employee by the former employer for a period of the particular year that precedes the transfer are deemed to be wages paid or deemed to be paid for that period by the new employer to an eligible employee and not to be paid or deemed to be paid by the former employer,

ii.  an eligible employee of the former employer qualifies as an eligible employee of the new employer if the employee holds, after the transfer, full-time recognized employment requiring at least 26 hours of work per week,

iii.  for the purpose of determining the amount described in subparagraph b or c of the first paragraph of section 34.1.12 in relation to the new employer, where the new employer does not have a base year preceding the particular year and the former employer has a base year preceding the particular year,

(1)  the new employer’s base year is deemed to be the year that precedes the particular year,

(2)  wages paid or deemed to be paid by the former employer to an employee in the former employer’s base year are deemed to be wages paid or deemed to be paid by the new employer to an employee in the new employer’s base year,

(3)  wages paid or deemed to be paid by the former employer to an employee in the part of the particular year that precedes the transfer are deemed to be wages paid or deemed to be paid by the new employer to an employee in the particular year, and

(4)  wages paid or deemed to be paid by the new employer in the particular year to an employee (other than an employee of the former employer or an employee substituted for such an employee) are deemed to be wages paid or deemed to be paid by the new employer to an employee in the new employer’s base year in the proportion that 365 is of the number of days in the particular year during which the new employer carried on a business,

iv.  for the purpose of determining the amount described in subparagraph b or c of the first paragraph of section 34.1.12 in relation to the new employer, where the new employer and the former employer have a base year preceding the particular year,

(1)  wages paid or deemed to be paid to an employee by the former employer in the former employer’s base year are deemed to be wages paid or deemed to be paid by the new employer to an employee in the new employer’s base year, and

(2)  wages paid or deemed to be paid by the former employer to an employee in the particular year are deemed to be wages paid or deemed to be paid by the new employer to an employee in the particular year,

v.  for the purpose of determining the amount described in subparagraph b or c of the first paragraph of section 34.1.12 in relation to the new employer, where the new employer and the former employer do not have a base year preceding the particular year,

(1)  for the purpose of determining the new employer’s base year, the new employer is deemed to have carried on a business during any month of the particular year during which a business was carried on by the former employer, and

(2)  wages paid or deemed to be paid to an employee by the former employer in the part of the particular year that precedes the transfer are deemed to be wages paid or deemed to be paid in the particular year by the new employer to an employee of the new employer in the proportion that the number of days in the particular year that precede the transfer is of the number of days in the particular year during which the former employer carried on a business, and

vi.  for the purpose of determining the amount described in subparagraph b or c of the first paragraph of section 34.1.12 in relation to the new employer, where the new employer has a base year preceding the particular year and the former employer does not have a base year preceding the particular year,

(1)  wages paid or deemed to be paid to an employee by the former employer in the part of the particular year that precedes the transfer are deemed to be, in the proportion that the number of days in the particular year that precede the transfer is of the number of days in the particular year during which the former employer carried on a business, wages paid or deemed to be paid by the new employer to an employee in the new employer’s base year and wages paid or deemed to be paid by the new employer to an employee in the particular year, and

(2)  wages paid or deemed to be paid by the new employer in the part of the particular year that begins at the time of the transfer, to an employee of the former employer or to any employee substituted for such an employee, are deemed to be wages paid or deemed to be paid by the new employer to an employee in the new employer’s base year; and

(c)  in the case provided for in subparagraph c of that paragraph,

i.  an eligible employee of the vendor qualifies as an eligible employee of the purchaser if the employee holds, after the transfer, full-time recognized employment requiring at least 26 hours of work per week,

ii.  for the purpose of determining the amount described in subparagraph b or c of the first paragraph of section 34.1.12 in relation to the vendor, where the vendor’s base year is the particular year, the aggregate of the wages paid or deemed to be paid by the vendor in the vendor’s base year is deemed to be equal to the proportion of the aggregate of the wages paid or deemed to be paid by the vendor in the part of the particular year that begins at the time of the transfer that 365 is of the number of days in that part of the particular year,

iii.  for the purpose of determining the amount described in subparagraph b or c of the first paragraph of section 34.1.12 in relation to the vendor, where the vendor has a base year preceding the particular year and has transferred all of its business to the purchaser, the aggregate of the wages paid or deemed to be paid by the vendor in the vendor’s base year is deemed to be equal to the proportion of that aggregate otherwise determined that the number of days in the particular year that precede the transfer is of 365,

iv.  for the purpose of determining the amount described in subparagraph b or c of the first paragraph of section 34.1.12 in relation to the vendor, where the vendor has a base year preceding the particular year and has transferred a part of its business to the purchaser,

(1)  in relation to the particular year, the aggregate of the wages paid or deemed to be paid by the vendor in the vendor’s base year is deemed to be equal to the amount determined by the formula

A - (A × B/365 × C), and

(2)  in relation to a year subsequent to the particular year, the aggregate of the wages paid or deemed to be paid by the vendor in the vendor’s base year is deemed to be equal to the amount determined by the formula

A - (A × C),

v.  for the purpose of determining the amount described in subparagraph b or c of the first paragraph of section 34.1.12 in relation to the purchaser, where the purchaser’s base year is the particular year, the aggregate of the wages paid or deemed to be paid by the purchaser in the purchaser’s base year is deemed to be equal to the total of the aggregate of the wages paid or deemed to be paid by the purchaser in the particular year to employees (other than former employees of the vendor or employees substituted for such employees) and the proportion of the aggregate of the wages paid or deemed to be paid by the purchaser to former employees of the vendor or employees substituted for such employees that 365 is of the number of days in the part of the particular year that begins at the time of the transfer, and

vi.  for the purpose of determining the amount described in subparagraph b or c of the first paragraph of section 34.1.12 in relation to the purchaser, where the purchaser’s base year precedes the particular year and for the purpose of determining the amount of the overpayment that the purchaser is deemed to make in accordance with section 34.1.12,

(1)  in relation to the particular year, the aggregate of the wages paid or deemed to be paid by the purchaser in the purchaser’s base year is deemed to be equal to the total of that aggregate, determined without reference to this subparagraph vi, and the aggregate of the wages paid or deemed to be paid by the purchaser for the part of the particular year that begins at the time of the transfer and that is attributable to former employees of the vendor or employees substituted for such employees, and

(2)  in relation to a year subsequent to the particular year, the aggregate of the wages paid or deemed to be paid by the purchaser in the purchaser’s base year is deemed to be equal to the total of that aggregate, determined without reference to this subparagraph vi, and the proportion of the aggregate of the wages paid or deemed to be paid by the purchaser for the part of the particular year that begins at the time of the transfer and that is attributable to former employees of the vendor or employees substituted for such employees that 365 is of the number of days in the part of the particular year that begins at the time of the transfer.

In the formulas in subparagraphs 1 and 2 of subparagraph iv of subparagraph c of the second paragraph,

(a)  A is the aggregate of the wages paid or deemed to be paid by the vendor in the vendor’s base year, determined without reference to that subparagraph iv;

(b)  B is the number of days in the period of the particular year that begins at the time of the transfer; and

(c)  C is the part, expressed as a percentage, of the vendor’s business that is the subject of the transfer.

2015, c. 24, s. 165.