Types of Income in Quebec and How They Are Reported

Employment Income (Line 101)

The Relevé 1 (RL-1) is a Quebec provincial tax slip issued by employers to report income paid to an employee. It is similar to the federal T4 slip. If you work in Quebec, you need both the T4 and RL-1 slips to file your taxes.

Employees in Quebec receive both a T4 and an RL-1 slip. While these slips report similar information, the amounts may not always be identical because they are used for different tax authorities.

If an employee leaves a company during the year, the employer must provide an RL-1 slip showing income and deductions up to that date. Even if a business closes or stops remitting source deductions and contributions, the employer is still required to issue the RL-1 so employees can complete their tax returns.

If the slip cannot be obtained, you should estimate your total employment income and source deductions, such as income tax, QPP contributions, and QPIP premiums, and include these amounts on your tax return.

Purpose and Use of the RL-1 Slip

For employees and taxpayers: The RL-1, together with your federal T4 slip, is used to complete your Quebec provincial tax return. It provides the information needed to declare your income and the amount of provincial tax and other contributions already deducted by your employer.

For employers: Employers in Quebec are legally required to prepare and submit RL-1 slips to Revenu Québec and provide them to employees by the last day of February each year.

Commissions and Fees Reported on RL-1

Employment-related commissions and fees must be reported on the RL-1 slip.

• Commissions are reported in Box A of the RL-1 slip.
• The gross amount of commissions paid in connection with employment is also included in Box M.
• Fees paid in connection with employment, such as those paid to council or committee members, are also included.

Other Taxable Benefits

Certain benefits provided by an employer are considered taxable benefits and must be included in employment income. These benefits are reported in specific boxes on the RL-1 slip.

Box J – Private Health Services Plan (PHSP)

The Canada Revenue Agency (CRA) defines a private health services plan (PHSP) as a plan that meets certain conditions. These include covering medical and hospital expenses, as well as expenses incurred in connection with a medical service within a reasonable time.

Additionally, all or substantially all of the premiums paid, generally 90% or more, must relate to medical expenses eligible for the Medical Expense Tax Credit (METC).

If an employer pays contributions to a PHSP for coverage received by a current, former, or future employee during the year, these contributions may constitute a taxable benefit. In such cases, the amount will be reported in Box J of the RL-1.

However, contributions or premiums paid by current, former, or retired employees to a PHSP covering medical or dental costs do not constitute a taxable benefit. Employees can claim eligible medical expenses on their income tax return.

Example

Sarah is an employee in Quebec. Her employer contributes $1,200 during the year to a private health services plan (PHSP) that covers her medical and dental expenses. Sarah also contributes $300 from her own salary to the same plan.

• The employer contribution of $1,200 is considered a taxable benefit and appears in Box J of her RL-1 slip.
• The employee contribution of $300 is not a taxable benefit and is not included in Box A of the RL-1 slip.

Box K – Trips (Remote Area)

Expenses for trips covered by an employer on behalf of an employee or a household member residing in a designated remote area may be considered a taxable benefit.

The value of this benefit must be reported in Box K. If the trips are undertaken for medical care, K-1 should be entered on the RL-1 slip along with the corresponding value of the benefit.

Example

Marc lives in a designated remote area and works for a company in Quebec. His employer paid $1,500 for a family trip for personal reasons and $800 for a trip for Marc to receive specialized medical care.

Box	Amount	Description
K	$1,500	Taxable benefit for employer-paid personal travel
K-1	$800	Taxable benefit for employer-paid travel for medical care

Box P – Multi-Employer Insurance Plans

Contributions made by an individual to a multi-employer insurance plan, other than insurance for loss of employment income, may be considered a taxable benefit for the employee.

If this applies, the value of the benefit must be reported in Box P of the RL-1 slip.

Example

Luc is an employee in Quebec. During the year, he contributes $500 to a multi-employer insurance plan that is not for loss of employment income. This contribution is considered a taxable benefit and is reported in Box P of the RL-1 slip.

Box V – Meals and Lodging

Payments made by an employer to an employee for meals and lodging, as well as meals or lodging provided by the employer, may be considered a taxable benefit.

If applicable, the value of the benefit must be reported in Box V of the RL-1 slip.

When an employer provides free or subsidized lodging, it is treated as a non-monetary benefit. The value of this benefit is calculated by subtracting any amount paid by the employee from the cost of the lodging.

Box W – Motor Vehicle

If an employer provides a motor vehicle, any personal use of that vehicle is considered a taxable benefit by the Canada Revenue Agency (CRA).

The taxable benefit for the use of a company vehicle includes:

• A standby charge for making the vehicle available.
• An operating expense benefit for costs such as gas and maintenance.

The value of the benefit must be reported in Box W of the RL-1 slip.

The same value of the benefit is also shown separately under the "Other information" section of the T4 slip under Code 34: Personal use of employer's automobile or motor vehicle.

If a vehicle other than an automobile, such as an ambulance, pickup truck, van, or bus, is made available for personal use, the employee will generally have a taxable benefit. The value of this benefit is determined by a reasonable estimate of the fair market value (FMV) of the actual benefit.

Box L – Other Benefits

Box L reports the value of taxable benefits provided to an employee that are not included in Boxes J, K, P, V, or W.

This section is used by employers to report other taxable benefits provided to employees.

Difference Between T4 and RL-1 Slips

Description	Federal T4 Slip	Quebec RL-1 Slip
Jurisdiction	T4 slip for federal (T1) tax return	RL-1 slip for Quebec tax return
Issued By	Employer to employee and CRA	Employer to employee and Revenu Québec
Pension Contributions	Canada Pension Plan (CPP) reported in Box 16	Quebec Pension Plan (QPP) reported in Box B
Employment Insurance	EI premiums reported in Box 18	Quebec Parental Insurance Plan (QPIP) contributions reported in Box H
Union Dues	Box 44 on T4	Box D on RL-1
Tax Withheld	Federal income tax deducted (Box 22)	Quebec income tax deducted (Box E)
Slip Filing	Sent to CRA with T4 Summary	Sent to Revenu Québec with RL-1 Summary
Employee Filing	Used for filing federal T1 General Return	Used for filing Quebec TP-1 Return

Correction of Employment Income

If you received an RL-22 slip for 2024, you must adjust your employment income to include any benefits received under an insurance plan.

To determine the adjustment amount, complete Work Chart 105.

Enter the amount from Box A of your RL-22 slip on Line 105 to account for the value of coverage received under certain insurance plans.

Example

Marc works for a construction company and is covered by a union-administered multi-employer insurance plan.

• T4 Box 14 Employment income: $50,000
• RL-1 Box A Employment income: $51,000
• Employer contribution to the plan reported in Box P: $1,000
• RL-22 Box A total value of coverage: $1,200

Calculation:

RL-22 Box A: $1,200
Minus RL-1 Box P: $1,000
Line 105 adjustment: $200

Employment Income Reporting Example

T4/Relevé 1 Description	Amount	T1 Line Number	TP-1 Line
Box 14 – Employment income	$55,000	Line 10100
Box A – Employment income	$55,200		Line 101
Box 17 – Employee QPP contributions	$3,500	Line 308
Box B – Cotisation au RRQ (QPP)	$3,500		Line 98
Box 18 – EI premiums	$850	Line 312
Box E – Impôt du Québec retenu	$8,500		Line 451
Box H – Cotisation au RQAP	$450		Line 438
Box 26 – CPP/QPP pensionable earnings	$52,000	Line 308	Line 98
Box G – Salaire admissible au RRQ	$52,000		Line 98.1
Box 44 – Union dues	$250	Line 21200	Line 397.1

Other Employment Income

Both the Canada Revenue Agency (CRA) and Revenu Québec require taxpayers to report all taxable income, including amounts that may not be included on a standard T4 or RL-1 slip.

Other employment income is reported on:

• Federal Line 10400
• Quebec Line 107

The amount entered on Line 107 is added to other sources of income to calculate total income and determine federal and Quebec tax liability.

Report on Line 107 any employment income that does not have a designated line elsewhere on the return. A note should be attached explaining the nature of the reported income.

Other employment income may include:

• Tips not included on an RL-1 slip.
• Wage Earner Protection Program (WEPP) payments reported in Box O of the RL-1 slip.
• Amounts allocated or paid under profit-sharing plans.
• GST and QST rebates related to employment expenses.
• Income received as an elected official, such as a municipal council member or school board member.

Tips Not Included on an RL-1 Slip

Tips received by employees that are not included on an RL-1 slip must still be reported as taxable employment income.

Example

Question: Emma is a waitress at Alen Tours Restaurant. She received tips of $2,000 for last year and this amount didn't show on her RL-1 slip. Does she have to declare tips, even though no slip was issued for them?

Answer: Yes, Emma must report the $2,000 in tips she received, even if the amount does not appear on her T4 or RL-1 slip. Under both federal and Quebec tax laws, employees in the hospitality industry are required to disclose their direct tips to their employer. All tips are considered taxable income and must be included on her federal and provincial tax returns.

Key Takeaway

Understanding how employment income, taxable benefits, and other employment earnings are reported on T4 and RL-1 slips helps Quebec taxpayers complete their tax returns accurately.

Employees should review both slips carefully to ensure all income, deductions, and taxable benefits are properly reported.