16. What are the implications in Kahnawà:ke of being a registered employer with registered employees?

A registered employer operating in Kahnawà:ke must deduct at source for all non native employees for Federal and Quebec income taxes as well as wage levies, ie QPP, QPIP and EI.

For native employees, the registered employer must deduct at source for the employee share of wage levies, where applicable.

The employer portion of the wage levies is noted in the table below. In addition to the wage levies, the employer is also subject to other payroll based charges as follows:

  1. Quebec Health Plan
  2. Commission des Normes de Travail (CNT)
  3. 1% Training tax

The criteria and rates are noted in the table below.

Quebec Pension Plan (QPP): The salary of a status Indian is not subject to QPP contributions if:

  • The income gives entitlement to the deduction for employment income situated on a reserve; and
  • The employer did not make the irrevocable election to have the Act respecting the Québec Pension Plan apply to this employment.

Employer Payroll Summary Information – 2013 Year

Payroll levies % of Salary Notes
Quebec Training tax 1% When employer salaries exceed $1 million
Employment insurance (EI) 2.128% Maximum annual insurable salary $47,400 for each employee
Maximum annual employer contribution $1,008.67 for each employee
Quebec Pension Plan (QPP) 5.1% Maximum annual salary $51,100 and annual basic exemption $3,500 for each employee
Maximum annual employer contribution $2,427.60 for each employee
(see comments above re eligibility)

Payroll levies
% of Salary Notes
Quebec Parental Insurance Plan (QPIP) 0.782% Maximum annual salary $67,500 for each employee
Maximum annual employer contribution $527.85 for each employee
Commission des Normes du Travail (CNT) 0.08% Maximum annual salary $67,500 for each employee
Maximum annual employer contribution $54 for each employee
Health Services Fund (HSF) 2.7% of total wages up to $1 Million
CSST varying rates Per government annual assessment (if applicable)

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