1. Administering Payroll for Canada
  2. Configure Quebec Labour Standards

Configure Quebec Labour Standards

Employers with employees working in Quebec are subject to the employer liability for Quebec Labour Standards levy.

The levy applies to all employers, unless specifically exempted. Use the Quebec Labour Standards report to fill out the "Calculation of the Contribution Related to Labour Standards" government LE-39.0.2-V form.

Complete these tasks to calculate the employer liability for Quebec Labour Standards levy and report it to the Quebec government:

  1. Configure the Quebec Labour Standards

  2. Calculate the employer liability

  3. Run the Quebec Labour Standards Report

Configure the Quebec Labour Standards

Complete these tasks to configure the Quebec Labour Standards:

The configuration of the Quebec Identification Number is mandatory to process this report. This is part of the Quebec Provincial Tax Jurisdiction Registration process, and can be configured at the payroll statutory unit or the tax reporting unit level.

For more information, refer 'Define Quebec Legal Reporting Unit Registration Code' topic in the Help Center.

  1. Enable the Quebec Labour Standards Calculation at the payroll statutory unit (PSU) level

  2. Create the Reporting Information card to capture the Parity Committee name

  3. Create the Quebec Labour Standards Contribution calculation component

  4. Create balance feeds for reporting

Enable the Quebec Labour Standards Calculation

To enable the Quebec Labour Standards calculation, select the Enable Quebec Labour Standards Calculation check box at the PSU level, under the Quebec Labour Standards section. Employees within the PSU that don't have the option selected, are excluded from the calculation and report.

Complete these steps to enable the calculations.

  1. Navigate to the Setup and Maintenance area on the Home page.

  2. Search and select the Manage Legal Entity HCM Information task.

  3. Enter the Legal Entity Name and click Search.

  4. Select the Legal Entity Name.

  5. Click the Payroll Statutory Unit tab.

  6. Click Quebec.

  7. Select the Enable Quebec Labour Standards Calculation check box.

  8. Click Submit.

It is very important to set this at the start of the tax year. If it isn't set prior to the first payroll of the tax year, the calculations aren't correct and balance adjustments are required for correct reporting. Once this option is enabled, it remains selected and you don't have to reset it every tax year.

Create the Reporting Information Card and Capture Parity Committee Details

If you have a Parity Committee, create a Reporting Information card to capture the Parity Committee name. Before you create the Reporting Information card, you must create a Parity Committee Name lookup to capture the lookup values.

Complete these steps to create the Parity Committee Name lookup values.

  1. Search and select Lookups under My Client Groups on the Home page.

  2. Search for the Lookup Type ORA_HRX_CA_PARITY_COMMITTEE.

  3. Click Add and enter these details.

    Field

    Value

    Lookup Code

    Enter a value to identify the Parity Committee Name, for example, QC_PARITY1

    Start Date

    Enter a date.

    Meaning

    Enter a value, for example, Quebec Parity Committee One.

  4. Click Save and Close.

Create the Quebec Labour Standards Contribution Calculation Component

Create the Quebec Labour Standards Contribution calculation component on the card as given here.

  1. Select Calculation Cards under My Client Groups on the Home page.

  2. Search for a person and open the Reporting Information card.

  3. Click Actions-Create, enter an Effective As-of Date, and Reporting Information in the Name field. Click Continue.

  4. Click Reporting Information under Component Groups in the left pane.

  5. Click Actions-Create under Calculation Components.

  6. Select the Calculation Component Quebec Labour Standards Contribution and click OK.

  7. In the Quebec Labour Standards Contribution: Details section, select the Parity Committee Name.

  8. Click Save and Close.

Create Balance Feeds for Reporting

Some columns on the Quebec Labour Standards Report require balance feeds for the balances to appear on the report.

The existing balances that require feeds are given here.

  • RL-1 Box A Adjustment

  • RL-1 Box R Employment Income Adjustment

  • Indemnities in lieu of notice

  • Indemnities for damages

  • RL-1 Deferred Salary or Wages

  • RL-1 Employee Benefit Plan

  • RL-1 Employee Trust

These are the new balances that require feeds.

  • Benefit from Amount Paid for Shares

  • CCQ Employee Wages

  • Commission or Committee Member Fees

  • Directors Fees

  • Heavy Equipment Operator Wages

  • Indemnities for Damages

  • Indemnities in Lieu of Notice

  • Parity Committee Employee Wages

  • Other Labour Standards Exempt Remuneration (feed this balance only if you're exempting the employee from Quebec Labour Standards calculations)

If enabled, the employer liability is calculated in the payroll run. The Quebec Labour Standards Results element is used to maintain these new balances calculated in the payroll. Balances correspond to the specific lines in the Quebec Labour Standards Report.

  • Quebec Labour Standards Gross

  • Quebec Labour Standards Subject

  • Quebec Labour Standards Excess

  • Quebec Labour Standards Taxable

  • Quebec Labour Standards Liability

  • Quebec Labour Standards Exempt

Overriding the Default Quebec Labour Standard Rate

The application uses a default rate of .06% to calculate the employer liability for the Quebec Labour Standard contribution. If required, you can override the default rate by adding a Calculation Value Definition record for the Quebec Labour Standards Rate.

  1. Select the Calculation Value Definitions task under Payroll in My Client Groups on your Home page.
  2. Enter Quebec Labour Standards Rate as the name of the value definition.
  3. Select a Canadian LDG.
  4. Select Quebec Labour Standards Rate.
  5. Under Calculation Values, click Add Row.
  6. Add the override rate. If the rate is 0.06%, enter a value of 0.0006.
  7. Click Submit.

Calculate the Employer Liability

If enabled, the liability is calculated in the payroll run. The Quebec Labour Standards Results element is used to maintain the following balances calculated in the payroll. These balances correspond to the specific lines in the Quebec Labour Standards Report, with the exception of the Quebec Labour Standards Exempt balance.

  • Quebec Labour Standards Gross – Line 7
  • Quebec Labour Standards Subject – Line 27
  • Quebec Labour Standards Excess – Line 32
  • Quebec Labour Standards Taxable – Line 33
  • Quebec Labour Standards Liability – Line 35
  • Quebec Labour Standards Exempt

Run the Quebec Labour Standards Report

Use the Run Quebec Labour Standards Report flow to calculate and report employer liability for Quebec Labour Standards.

Before you run the report, ensure that you complete these requirements.

  • The configuration of the Quebec Identification Number is mandatory to process this report. This is part of the Quebec Provincial Tax Jurisdiction Registration process, and can be configured at the payroll statutory unit or the tax reporting unit level.

  • Run this report only after you complete the End-of-Year Archive processing.

  • Include all the new balances mentioned in the previous section in the year-end archive process.

The report is generated in Excel spreadsheet format with two separate tabs.

  • The Summary tab includes the summary information and reports one row for each Quebec Identification Number.

  • The Detail tab includes detail information and reports one row for each employee. Most amount columns displayed as output in the spreadsheet are balances that map to lines on the government form. Calculated values aren't displayed on the report.