How do I declare my training costs?
If the answer is yes, you are required to put 1% of your total payroll toward eligible training expenses. Otherwise, you will have to pay this amount when you file your Relevé-1 Summary. Since 1998, the Job Skills Act, also known as the 1% Training Law, has required employers to declare their expenditures to Revenu Québec. They must also report all training activities to the Commission des partenaires du marché du travail (CPMT) [Labour Partners Commission].
What do I need to declare?
When it comes to eligibility criteria, the most important factor is the purpose of the training activity. No matter the job title, you want your employees to come out with more skills, qualifications, or the recognition of acquired competencies. The following training activities are generally accepted:
- Recognized external training
- Integration courses for new employees
- Steps to set up internal training
- e-learning (certain conditions apply)
Not all training is created equal, and not all training is admissible. Conditions apply to both internal and external training activities. And you’ll need to document everything very precisely.
How do I set up my declaration?
Unfortunately, you can’t just hand over a pile of training receipts. For each eligible activity (whether it’s internal or external), you will need to include all relevant information, in addition to a global and specific training plan. First and foremost, you will want to create a training committee, which must meet at least once a year, to draft and monitor the global training plan.
To do so, you will have to keep all supporting documentation for your training activities. These will include training plans, internal training committee minutes, training certificates, attendance records and proof of payment, along with invoices and payroll records.
At the end of each year, you can plan this 3-step process for the year ahead. For step one, gather together the procedures and resources you will need to declare your training activities. Secondly, communicate with your employees and managers to collect all your training materials and their supporting documents. Finally, compile all training completed by your Quebec employees and prepare the required information for your annual declaration.
When do I need to submit my declaration?
There are two possibilities:
1) If you exceed your required amount of training expenses, you may carry forward the excess amount to future years.
2) If you have not reached the required amount, you can either use your carried over balance from previous years or pay the outstanding total as tax to the government.
You must report your payroll and eligible training expenses to Revenu Québec via the Relevé 1 – Summary of Employer Deductions and Contributions (RLZ-1.S) by the last day of February.
You must also declare the additional details of the training activities to the CPMT via your clicSÉQUR account no later than May 31. Your clicSÉQUR account is accessible on the “Zone Entreprise” link of the Entreprise Quebec website. It allows employers to access several Quebec government services and file their returns in a single, secure location.
If you have already structured your skill development activities, you may be eligible for the Quality Training Initiative Certificate. In this case, you would then be exempt from your administrative obligations (tracking expenses and reporting to Revenu Québec) with respect to the Act for the next three years.
What are the risks and benefits of staying on top of my training activities?
In recent years, the government has increased its audits on companies, verifying their supporting documentation to ensure they comply with the 1% Law. It is therefore essential that you record all information pertaining to your business’s training activities. Otherwise, you may be required to pay back outstanding amounts, plus penalties and interest. This can represent significant sums, especially when Revenu Québec demands supporting documents for up to four previous years, applying interest and penalties for non-compliance.
Although this may seem like a daunting task, you will find that with a little planning and organization, you will successfully comply with the 1% Law (Bill 90), all the while improving the skills and productivity of your workforce.
Is there anyone who can help me with this?
Solertia’s solutions are specifically designed to help you see things more clearly. We’ll break down your requirements in simple terms and show you how to structure your activities in a way that makes sense. Here’s how we work:
- We’ll quickly identify eligible training activities for your organization
- We’ll structure your training practices and related documentation
- We’ll detect any overpayments to Revenu Québec from the past four years.
And if you’d rather learn how to do all this by yourself, Solertia offers turnkey options and coaching to employers of all sectors.