As a compliance requirement, for a taxable benefit-in-kind to be eligible to be reported in box G-1 of the RL-1 slip, it must be part of a payment in which no normal earnings were included and no QPP withholding was generated.
For example, if an employee has a payment that includes normal earnings that are subject to QPP, plus a $100 taxable benefit, the taxable benefit isn’t tracked against the QPP G-1 and QPP ER G-1 tax authorities and, as such, isn’t recorded in box G-1 of the RL-1 slip. Instead, the taxable benefit is tracked with the QPP and QPP ER tax authorities and, as such, is recorded in box G of the RL-1 form.
If the payment includes non-taxable benefits, such as normal pay, and there is no QPP deduction in the payment because the employee has reached the QPP yearly contribution limit, the wages of the taxable benefit are still not tracked against the QPP G-1 and QPP ER G-1 tax authorities.
If the payment includes only taxable benefits after the QPP wage has reached the yearly limit, Dayforce stops tracking the taxable benefits against the QPP G-1 tax authority. For example, if an employee’s QPP wage has reached the $55,300 limit in the previous pay run, and, in the current pay run, if the employee receives a $100 taxable benefit only, this $100 will not be tracked against the QPP G-1 tax authority, even if the payment does not include QPP deductions.
As an exception to the requirements for box G-1 reporting, taxable benefits for employer contributions to labor sponsored funds (LSFs) for Fondaction or FTQ should be entered in box G-1 regardless of other earnings on a payment. This differs from other types of taxable benefits, which can only be reported in box G-1 if there are no earnings in the payment that are subject to QPP withholding.
To facilitate the required reporting of employer LSF contributions, the LSF-G1 tax authority is used to track employer LSF contributions and report them in box G-1
More information is available in "Earnings as LSF Contributions" in the Dayforce Implementation Guide.
More information about the RL-1 slip and other tax forms for Québec is available on the Revenu Québec website: http://www.revenuquebec.ca.