Employee Development: An Investment that Pays

THE LAW

Commonly known as the “Job Skills Act” or the “1% Training Law,” the Act to promote workforce skills development and recognition, requires any Quebec-based employer whose payroll exceeds $2 million to pay eligible training expenditures equivalent to 1% of its payroll and declare the amount invested to Revenu Québec.

FLEXIBLE OPTIONS

The Act offers employers multiple ways to meet their obligations. The end result must contribute to improving the qualifications and skills of your staff and meet all the specific legal requirements. For example:

• Training provided through educational institutions, professional organizations and/or external trainers
• Development of training programs
• Activities to identify training needs
• Paid training leave
• Activities to assess and recognize skills
• Internships
• Workplace learning program (PAMT)
• Contribution to a training program

Possible three-year exemption

If your company has a structured skills-development program, you might qualify for a certificate of training initiative quality (CQIF). This exempts organizations from the Act’s administrative obligations (accounting for expenditures and reporting to Revenu Québec) for three years.

WARNING: COMPLIANCE IS MANDATORY

Organizations who provide inadequate documentation or fail to cover the entire amount must pay the difference to the government. Revenu Québec has the power to claim amounts from the past four years, with applicable interest and penalties.

Keep the following documents:

• Training programs
• Internal training committee minutes
• Training certificates
• Attendance records
• Proof of payment
• Payroll reports
• Any other relevant documentation

THE SOLERTIA WAY: CLARIFY, SIMPLIFY AND STRUCTURE

Solertia offers solutions designed explicitly to help you understand the law, simplify your obligations and structure your activities. Our approach includes:

• Identifying eligible training activities
• Structuring your training practices and documentation
• Recovering any amounts overpaid to Revenu Québec over the last four years
• Turnkey tools or coaching for any employer looking to meet their obligations on their own
• Assisting with Revenu Québec’s compliance verification process