Government Agencies. Content: Law R-20 QUEBEC CONSTRUCTION PAYROLL. 36th Annual Conference & Trade Show June 27-29, 2018 Ottawa, Ontario

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1 36th Annual Conference & Trade Show June 27-29, 2018 Ottawa, Ontario QUEBEC CONSTRUCTION PAYROLL Presented by: France L. Trottier, PCP Government Agencies CCQ RBQ CNESST COMMISSION DE LA CONSTRUCTION DU QUÉBEC RÉGIE DU BÂTIMENT DU QUÉBEC COMMISSION DES NORMES, DE L ÉQUITÉ, ET DE LA SANTÉ SÉCURITÉ DU TRAVAIL Content: Law R-20 The negotiation process Provisions of the four sectors Content and length of collective agreements Mandatory union membership The powers of the CCQ 1

2 Work Performed Governed by Act Work governed: Mainly all construction work in Quebec Work exclusion: Exceptions defined by Act Work performed by hired permanent employees Agriculture, mining, agricultural, etc. Natural person for their own personal account: Construction of a garage or a storage shed Ex.: Bungalow roof, painting owner s home Work Governed by Act: Four Sectors Residential sector Institutional and commercial sector Industrial sector Civil engineering and roads sector Everyone has a collective agreement of it s own! Definitions of Each Sector Residential : Light : New residential building, rental apartment building, housing less than 4 floors Heavy : Maintenance and repair more than 6 floors, condominiums of 8 floors Institutional and commercial Hospitals, schools, churches, cinemas, hotels, arenas, etc. 2

3 Definitions of Each Sector Industrial Buildings, transformation of raw materials and production of goods, furniture manufacturer, etc. Civil engineering and roads Roads, aqueducks, sewers, bridges, dams, electricity lines, natural-gas pipelines, etc. CCQ Powers Inspection Act with commissioner s power for civil and criminal proceedings Interpretation of collective agreements and the scope of the Act Management of competency conflicts Job-site inspection, etc. Collective Agreements: Conditions of Work Classification of jobs Wage rates Pay statement Duration of work Supplementary plan; etc. 3

4 Collective Agreements: Other Clauses Seniority Mobility of manpower Salary increases Premiums, indemnities and miscellaneous allowances Travelling expenses; etc. Collective Agreements: Common clauses Union security Union representation Grievance-settlement procedures Recourse with regard to disciplinary measures Arbitration Insurance and pension plan Union associations CSD SQC FTQ CPQMC (INTER) CSN CENTRAL DES SYNDICATS DÉMOCRATIQUE SYNDICAT QUÉBÉCOIS DE LA CONSTRUCTION FÉDÉRATION DES TRAVAILLEURS ET TRAVAILLEUSES DU QUÉBEC CONSEIL PROVINCIAL DU QUÉBEC DES MÉTIERS DE LA CONSTRUCTION CONFÉDÉRATION DES SYNDICATS NATIONAUX 4

5 Duration of Collective Agreements Four Years Residential & Civil Engineering and Roadwork December 31, 2017 to April 30, 2021 Industrial & Institutional and Commercial Since August 31, 2014 following arbitral agreement of March 19, 2018 Sector-based Employer Association APCHQ ACQ ACRGTQ ASS. DES PROFESSIONNELS DE LA CONSTRUCTION ET DE L HABITATION DU QC ASSOCIATION DE LA CONSTRUCTION DU QUÉBEC ASSOCIATION DES CONSTRUCTEURS DE ROUTES ET GRANDS TRAVAUX DU QC CMMTQ CMEQ SPECIALIZED ENTREPRENEUR CORPORATION CORPORATION DES MAÎTRES MÉCANICIENS EN TUYAUTERIE DU QUÉBEC CORPORATION DES MAÎTRES ÉLECTRICIENS DU QUÉBEC Other Association or Partnership ASSOCIATION DES ENTREPRENEURS EN CONSTRUCTION DU QUÉBEC Commun clauses for all four sectors - Mandatory UNITÉ PERMANENTE ANTICORRUPTION 5

6 Sectors: Types of work and schedules Each sector of activity defines wages in accordance with: Dates of execution of work Sectors of activities Type of work performed Trades, specialties or occupancy Employee skills Schedules Features of sectors According to collective agreements Remoteness Hours of execution of work Normal hours of work Reserve of hours (banked time) Distribution, reference period Liquidation of the reserve of hours; etc. Vacation Indemnities Composition of 13 % indemnities 6 % in annual vacations 5.5 % in paid statutory holidays 1.5 % in sick leave Cheques are sent twice a year by CCQ to workers 6

7 Construction Industry Calendar Statutory Holidays Good Friday (March 30, 2018) Easter Monday (April 2, 2018) La fête de Dollard (Journée nationale des Patriotes or Victoria Day) (May 21, 2018) The Fête nationale du Québec (Saint-Jean-Baptiste Day) is a paid statutory holiday for all workers, with no exceptions. For 2018, the paid statutory holiday is June 25 Canada Day the paid statutory holiday is July 2 Labour Day (September 3, 2018) Thanksgiving (October 8, 2018) Remembrance Day (November 12, 2018) Christmas (December 25, 2018) New Year s Day (January 1, 2019) Earnings Statement Requirements Features of additional requirements The name, telephone and address of the employer Client number of the employee CCQ account number RBQ account number Hour reserve: credited and debited along with carry forward amounts 7

8 Labour Management Employer must: Maintain an employee file Supply forms: TD1 and the TP Remit Employee Statement (Schedule F or H of collective agreement) Validate employee certificate of competency Labour Management The employed worker subject to the Act must provide: A certificate of competency A union affiliatecard The completed employee statement (Schedule F or H) Workers Integration in the Industry Workers must hold: CCJ = Journeyman competency certificate CCA = Apprenticeship competency certificate OCC = Occupation competency certificate Access for non-graduates: DEP = Diploma of study professional in the trade upon when labour shortage Obtain an employment guarantee for 150 hours over a period of at least 3 months Undergone the course «Santé et sécurité générale sur les chantiers de construction 8

9 Access of Women to Industry Program for access to equality for women in industry In 2016 increase of active women from 1.48% to 1.62% of active workforce Change in regulations Establishing accompanying service for integration of women Campaign for women in construction Apprenticeship Record Book Upon receiving the competency certificate-apprenticeship they are supplied with an apprenticeship record book which contains: Hours worked in the apprenticeship Apprenticeship hour credits Identification of the most recent employers The hours required for eligibility for the provincial qualification exam Workforce Movements During hiring and termination: Within 48 hours Online through CCQwebsite Consequences of non-compliance: Lawsuits Penalties ranging from $1,009 to $2,009 per worker if not submitted 9

10 Time Sheet Systems Mandatory Register hours worked daily Nature of the work Type of job site Address of job site Construction Pay Frequency: Weekly Payment method: Direct Deposit Manual Cheque Timing of payment: Thursday before end of workday Steps for Calculating the Pay Sector identification and types of work executed 10

11 Steps for Calculating the Pay Identification of status codes Steps for Calculating the Pay Identification of the trades, specialties and occupations Online Steps CCQ Website 11

12 Online Steps CCQ Website Online Steps CCQ Website Online Steps CCQ Website 12

13 Online Steps CCQ Website Scenario Construction Pay in Quebec Joe Salarié Carpenter journeyman, single, worked 40 hours He is a member of Local 9 of the FTQ He worked on a light residental project for the week ending May 26, 2018 Payroll Calculation Step 1. Earnings: Gross pay, vacation pay, security equipment 2. Vacation: 13% each pay: 6% vacation, 5.5% statutory holidays, 1.5% sick leave 3. Security equipment: Not taxable: Payable to the net according to collective agreements 4. Taxable benefits in Quebec only: Life insurance and health medical/dental (MÉDIC card) 13

14 Payroll Calculation Step 5. Deductions paid by employee QPP: (Wages + vacation + taxable benefit Qc.) weekly exemption * rate 5.4 % E.I.: (Wages+ vacation) * rate 1.30 % QPIP: (Wages + vacation) * rate % CCQ levy: (Wages + vacation) * 0.75% Union fees: CCQ hours, according to collective agreement, many particularities Sector-based contribution: All sectors, excluding residential, hours * rate $0.02 RPP: Rates are variable according to trade and sector, hours * rate Federal income tax: (Wages + vacation) union fees CCQ levy sector-based contribution RPP = Net taxable income = income tax tables Provincial income tax: (Wages + vacation + taxable benefits) RPP = Net taxable income = income tax tables CCQ vacation indemnity: Retained and remitted to CCQ Net pay: Amount to remit to employee Manual Pay Calculation Statement Employer Remittances DAS Federal CRA Basis of calculation: E.I. (Wages + vacation) Employee: * 1.30 % Employer: 1.4 * Employee s contribution Maximum insurable earnings: $ Employee s income tax 14

15 Employer Remittances DAS Provincial RQ Basis of calculation: QPP: (Wages + vacation + taxable benefits) Employee: - $67.30 * 5.40 % Employer: Same amount dollar for dollar Maximum insurable earnings: $ QPIP: (Wages + vacation) Employee: * % Employer: * % Maximum insurable earnings: $ Employer Remittances DAS Provincial RQ Basis of calculation: HSS: (Wages + vacation + taxable benefits) Employer: Variable rates according to worldwide payroll between $2.30 to $4.26 Employee s provincial Income tax CNESST: (Wages + vacation + taxable benefits) or weekly assessable earnings * rate Employer Contributions to CCQ CCQ levy: (Wages + vacation) * 0.75 % (Minimum $10.00 /monthly) Social (Fringe) benefits: Hours worked * Rate tables by trade and sector Insurance tax: Hours worked * Rate tables by trade and sector AECQ hourly rate: Hours worked * $0.03 (Minimum $5.00 /monthly * GST & QST) AECQ annual remittance: $ / yearly * GST & QST 15

16 Employer Contributions to CCQ Indemnity fund: Hours worked * $ 0.02 Training fund: Hours worked * $0.15 Qualification fund: Hours worked * Rate vary from $0.01 to $0.05 Residential exempt Residential sector contribution: Hours worked * $0.043 Employer Costs & Remittances Other Employer Contributions CNESST (CNT): On hours not under the Act R-20 WSDRF Law 90 = 1% If applicable on total Quebec payroll that exceeds 2 million are subject to * 1 % Less amount of eligible training expenditures carried forward from previous years If eligible amounts are due upon filing the RLZ-1.S last day of February following year. 16

17 T4 Tax Slips Box 14 : Box 20 : Gross earnings, vacation and statutory holidays RPP Employee contribution Box 26 : QPP Pensionable earnings, Maximum of $ Box 44 : Union dues: CCQ levy Union dues contribution Sector-based contribution Box 50 : RPP Registration number is: Box 52 : Pension adjustment: Box 20 + CCQ rate defined for employer contribution Box 55 : QPIP Premiums (Same amount as on box «H» Relevé 1) Box 56 : QPIP Insurable earnings (Same amount as on box «I» Relevé 1) Relevé 1 Tax Slip Box A : Box D : Gross earnings, vacation pay, statutory holidays and taxable benefits RPP employee contribution Box F : Union dues (Same as reported on T4) Box G : Box H : Box I : Box P : QPP Pensionable earnings, must be populated with a value, NB: Maximum QPIP Premiums QPIP Insurable earnings, Special attention: Must include travelling and parking expenses since taxable under Federal, Should be same as on Box 14 of T4 Contributions multi-employer insurance Plan Private health plan insurance is as per rates handed by CCQ at year-end CCQ Monthly Report Obligation to produce a monthly report Deadline: Transmitted by latest on the 15 th day of the month pertaining to activities of the previous month. If Saturday or Sunday must be received on the Friday before the 15 th Transmission mode: Electronic transmission Telephone transmission Postal transmission 17

18 CCQ Monthly Report Payment method: Preauthorized payment: Must have registered prior to using this method Electronic Payment: Through the financial institution Payment by cheque: Employers must identify their account number Penalties: Failing to transmit on the due date, is incomplete, has erroneous information, or is received after the time frame may lead to interest charge and legal action. Interest is set at 6 % annually and the penalty is 20% CCQ Montly report Step by Step to Complete the CCQ Report Line by line of monthly report: A Employer number along with requested work period B Signature C Date of signature D Identification: S.I.N/Last name/first name E Work week: as per CCQ calendar F Apprenticeship period: If more than one, use separate line G Trade code: If more than one trade, use separate line H Status: None if is a construction employee journeyman 18

19 Step by Step to Complete the CCQ Report I J K L M N O P Q R Sector: If more than one, use a separate line Schedule of wages: Work region: as per table «C» Union or syndicate: CSD, CSN, SQC or FTQ/International (Local) Number of hours worked: Use decimals Assessable earnings: Paid vacations and statutory holidays: 13% Union dues: Social benefits: Sectorial contribution: Step by Step to Complete the CCQ Report To complete the requested information in lower frame S Social benefits (Total): T Insurance sales tax: U Special compensation fund: V A.E.C.Q. Hourly contribution: W A.E.C.Q. Annual contribution: X GST: Y QST: Z Vacations and general holidays pays (Total) Step by Step to Complete the CCQ Report AA BB CC DD EE FF Levy: Union contribution (Total) Qualification fund Training fund Sector-based contribution (Total) Total of remittance to pay in order to be compliant 19

20 CNESST Employer Obligations To register upon first employee hiring within 14 days Possibility to register online on website Will receive periodic remittance rate The rate is calculated on the actual wages paid Remittance & Statement of Wages Annual Report Remittance payment: To RQ at same DAS reporting period: Weekly or twice-monthly are authorized to a monthly. Others are monthly, quarterly and annually. Statement of wages form: Received at beginning of every year. Must report all wages paid in previous year and this statement is du no later than March 15 th. Applicable Penalties For not filing, or insuffisant remittance the penalties are on a progressive scale 1 to 7 days: 7 % 8 to 14 days: 11 % 15 days or more: 15 % Compliance does pay! 20

21 Assessable Earnings The assessable earnings are generally speaking the amounts we would declare on tax slip Box «A» on the Relevé 1 However we have to consider the weekly or annual maximum assessable earnings per employee To exclude: The President, Vice-President, Secretary, Tresurer or any other person that has managing rights and control functions Annual Maximum Assessable Earnings in Quebec The annual assessable earnings is $74,000 Quebec construction industry only has a possibility to consider excess earnings on a weekly basis Requirements: During a years operations that at least 40 % of the assessed earnings are in a same classification unit Calculating Excess Earnings Basis of the calculation for excess earnings: Determined by: 365 days / 7 days week = $74,000 / weeks = $1 419,26 Weekly assessable earnings 21

22 CNESST Classification Units CNESST classifies the industries to units according to the activities An organization may be classified in multiple units depending on activites In the Quebec industry there are 30 different classification units Rates of premiums are expressed in dollars per $100 assessable earnings Accident reports requirements and claims Work accident Complete form ADR «Avis de demande de remboursement» If loss greater than accident day Delay: Two days after the return to employee work station or not later than 2 days after the end of 14 days. Calculation of Replacement Indemnity Day of accident or when abandonment is 100 % payable by the employer First 14 days must be paid on regular basis Basis for calculation: (Wages + vacation pay) or maximum assessable earnings QPP E.I. QPIP Federal income tax Provincial income tax Result = Net income * 90 % NOTE: Important to ensure that the assessable earnings does not exceed the maximum weekly insurable! 22

23 Questions Thank You For Participating Please remember to complete your evaluations. 23