TRAINING EXPENSES: Avoid additional contributions to the
Fonds de développement et de reconnaissance des compétences de la main-d’œuvre.
Every year, employers are obliged to make a contribution to the
Fonds de développement et de reconnaissance des compétences de la main-d’œuvre
This is despite the fact that they have already spent 1% of their payroll on employee training. In many cases, these employers had not put in place certain requirements of the Act, such as a training committee, specific training plans for in-house training courses, and so on. For 2015, contributions to the Fonds de développement et de reconnaissance des compétences de la main-d ‘œuvre totaled some $22 million.
1. What is the 1% law?
In Quebec, this law requires employers with a payroll in excess of $2 million to invest at least 1% of their total payroll in training each year. To comply with this law, employers must record all their training activities and provide Revenu Québec with proof.
2. How can we free ourselves from these administrative tasks?
To avoid the red tape associated with this law, you can take advantage of the Certificat de qualité des initiatives de formation (CQIF).
3. What is the Certificat de qualité des initiatives de formation (CQIF) and what are its benefits? Unquestionable tax and administrative relief!
Holders of the CQIF are exempt, for a period of three years, from..:
- declare their training expenses annually;
- keep the supporting documents required by law;
- submit to Revenu Québec audits of eligible training expenses;
- forward the Declaration of Training Activities to the CPMT.
4. How to obtain the Certificate of Quality for Training Initiatives (CQIF)?
You must demonstrate that you have an employer/employee consultation structure and a skills development process (including a description of the methods used to analyze training needs). The cost of applying for a certificate is $1,000, payable upon renewal every three years.
For more information on the 1% law, read on .
Need help getting the
Certificate of quality of training initiatives (CQIF) ? Contact us now!
