Guidance on Filing the RL1 Summary and CNESST Salary Declarations
The first important year end deadline for corporations, with employees, is the end of February. Salary declarations including T4 and RL1 (in Quebec) slips and summaries have to be filed with CRA and RQ. While there are numerous payroll software that handle the filing of the T4 and RL1 slips, the RL1 summary is usually left to the employer (and/or their accountants) to file. While a T4 summary is not required if slips are filed electronically, an RL1 summary has to be filed regardless of the method of filing the RL1 slips i.e. manually or electronically. Additionally, employers in Quebec also have to prepare a year end declaration for CNESST which is the Quebec version of workers compensation. As someone who has filed numerous slips, declarations and summaries for clients over the years, I have enumerated some tips on preparing these documents:
How to Obtain the RL1 Summary Online
Payroll Software:
If you are using payroll software (either an accounting program or a software that only prepares slips) to prepare your RL1 slips, then there will almost always be a report called the "RL1 Summary" which can be used.
Tax Software
Slip specific programs (like taxcycle, Profile, DTMax forms etc.) will produce an RL1 summary which can be directly mailed to Revenue Quebec. However, most accounting software, will only produce a non official summary report that then has to be transcribed onto the actual form which can then be mailed.
Revenue Quebec My Account for Business (Clic Sequr)
File the RL1 summary using the Clic Sequr (Revenue Quebec my business account) form. This is the best way to file it as there is confirmation upon filing that the form has been submitted and therefore helps to avoid interest and penalties for forms that get "lost in the mail". When filing through Clic Sequr for Business you also have a record of the deductions at source paid during the year which can be matched to your own records.
How to Obtain the RL1 Summary Using the Paper Forms
"Sommaire des retenues et des cotisations de l'employeur"
File the RL1 summary manually using the form received which is usually received in the mail before year end called "Sommaire des retenues et des cotisations de l'employeur". This lists the DAS paid for the first 9 months (or 3 quarters) while the last 3 months (or quarter) has to be entered manually. Once completed this has to be signed and mailed. .
Fillable PDF Form from RQ Website
File it using the fillable form available and can be downloaded at the Revenue Quebec website. This can be filled out directly on your browser after which it should be signed and mailed.
How to Prepare the RL1 Summary
The form essentially requires a breakdown of the deductions at source paid by category including:
QPP (RRQ) Boxes 1 and 2 which is the Quebec pension plan. Note that the employer portion is always the same as the employee portion.
QPIP (RQAP) Boxes 7 and 8 which is the Quebec Parental Insurance Plan. The employer portion is calculated at 1.4 times the amount of the employee portion.
Quebec Income Tax Box 10 (Impot du Quebec) is the amount of income taxes deducted from employee's paycheques
Health Services Fund (FSS or QHSF) Box 28 This represents the gross payroll and is generally only required if the corporation is in the primary and manufacturing sectors as there is a reduced rate for these types of business. The rate for small business who do not qualify for the reduced rate for 2024 and have less than $1 million in salaries is 1.65%. Other rates can be found here.
Health Services Fund (FSS or QHSF) Box 29 then requires the NAICS code that relates to the business which can usually be found on the corporate tax return only if your business qualifies for the reduced rate.
Salary and wages subject to the QHSF (FSS) contribution Box 30 requires the gross payroll amount
FSS/QHSF Contribution Rate on box 36 is the QHSF rate that applies to the business which is 1.65 in 2024 (and 2023) for businesses with payroll less than $1 million except for those in the primary and manufacturing sectors If your payroll exceeds $1 million or your business is in the primary/manufacturing sectors, a calculator for the rate can be found using the RQ Webras tool which can be found here
Source deductions and remittances on box 26 represent the amounts paid during the year relating to combined amounts of QPP, QPIP and Income tax
Total on box 38 are the total amounts paid to Revenue Quebec relating to FSS(QHSF).
Contribution related to labour standards on box 40 is required by most employers. The rate for 2024 (and 2023) is 0.0006 (0.06%) for most small businesses (with certain exceptions) and maximum salary to which this applicable, for each individual employee is $94,000 in 2024 ($91,000 in 2023).
Workforce Skills Development on box 50 applies to employers whose total salaries exceed $2 million. In this case they are required to contribute 1% of annual salaries less eligible training expenditures. Further details on this can be found here
If everything has been done correctly and deductions at source have been correctly remitted during the year, the only amount payable should be the CNT amount. The RL1 summary should be printed, review, signed and mailed along with a cheque for the CNT amount. If filing electronically using Clic Sequr, a remittance slip will be generated. This can be mailed to Revenue Quebec along with a cheque.
It is important to note that if your business is registered with Revenue Quebec for Deductions at Source and payroll, the RL1 summary is required even if salaries were NOT paid during the year. Failure to file will result in penalties. If not salaries were paid, simply complete a $0 declaration.
See tutorial below on detailed instructions on how to complete the RL1 Summary
How to Prepare and file the CNESST Return at Year End (Declaration des Salaires)
Employers with employees who are not directors/owners of the corporation, in addition to the salary declarations, also have to file a CNESST declaration in Quebec. If a company’s only employees are owners/directors they are exempt from CNESST.
Ideally the CNESST contributions are being remitted during the year based on the rate which is determined by CNESST and sent to the employer in the year prior to the year to which it is applicable (this is usually updated on an annual basis). The rate is based on the type of business, industry and specific company considerations among other factors. The CNESST declaration is usually done online. A user name and password will be sent to the employer business which should be saved as this becomes your access to the online portal where all CNESST documents are available. It can also be connected through the Clic Sequr account although this has to be set up independently.. In some cases CNESST will send you a user code and password on an annual basis if you have not set up an online account.
When you login to the CNESST website, you will find a link to "Declaration des salaires" The CNESST year end return needs to be completed by the deadline of March 15th. The return is quite simple to complete. Once you click on the form you will be prompted to enter your contact details after which you are required to enter
your total salaries on Line 1 which should agree to the total salaries on the RL1 summary box 30.
Line 2 reflects salaries relating to independent contractors if you wish to provide them with coverage.
Line 5 is important and relates to directors of the company whose salaries are excluded from the calculation of CNESST.
Finally line 7 of the "declaration des salaires" represents the excess of salaries over $94,000 for each employee that earns a wage higher than this amount in 2024 ($91,000 in 2023)
The next step will ask you about volunteers. If you have volunteers working in your organization, you will be asked to estimate the number of volunteers and the total number of hours that they will work in the year following the declaration. Finally, you can tick the box if the contact person is the same as the person who is responsible for the declaration or enter new information. Once complete, the form can be submitted online. Note that CNESST will calculate any under or over payments, based on the rate they have assigned to your business, and send you an assessment along with an annual fee of $65 in most cases.
The preparation of these forms is fairly straightforward as long as the preparer is familiar with the jargon and has an accurate schedule of deductions. The most important thing is to file the returns on time to avoid penalties and interest. Errors can be corrected via an amended return in the future.
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