Are you an employer with a payroll in excess of $2 million? The Act to promote workforce skills development and recognition, in force since 1998, applies to you. Commonly referred to as the “Skills Act” or the “1% Act“, this law requires employers to incur eligible training expenses up to an amount representing 1% of their payroll, and to declare the amount invested to Revenu Québec.
A panoply of resources
The Act offers employers many ways of fulfilling their obligations. The result obtained must contribute to improving the skills and competencies of our personnel, as well as complying with all the conditions associated with the chosen method. These include :
- Staff training through educational institutions, professional associations or external trainers;
- Development of training plans;
- Activities to determine training needs;
- Paid training leave;
- Assessment and recognition activities;
- Loan of personnel for training purposes;
- Hosting trainees;
- Work-based learning program (WBLP);
- Contribution to a training mutual.
The importance of respecting parameters
You need to cover the full mandatory amount, and properly document all training expenses, because if you don’t, the difference will have to be remitted to the government. In addition, Revenu Québec has the power to claim amounts for the past four years; interest and penalties may apply in the event of non-compliance.
List of documents to be retained :
- Training plans;
- Internal training committee minutes;
- Training certificates;
- Attendance registers;
- Proof of payment;
- Payroll reports;
- Any other relevant supporting documents.
Remember: investing in your human resources pays off. In this case, that 1% investment will pay off!
In the same vein: 4 things you need to know about the 1% law!
