RL-1 and T4 for a small employer in Quebec: the steps from first payroll to February

First, you need to know whether the person you are hiring is an employee. The CRA explains that even if a written contract says a person is self-employed, the person cannot be considered self-employed if an employer-employee relationship is shown to exist: the facts of the working relationship as a whole determine the status. Revenu Québec, for its part, refers to its own criteria for determining a worker's status. If in doubt, the CRA lets the employer or the worker request a CPP/EI ruling on employment status. The rest of this article assumes you are hiring an employee.

A salary paid to a shareholder who works for their corporation is employment income: the corporation makes the deductions and files the RL-1 and the T4 as for any employee. Dividends, however, do not go on the RL-1 or the T4: according to Revenu Québec, they are reported on the RL-3 slip, and, according to the CRA, on the T5 slip at the federal level. Some rules differ for a shareholder who controls the corporation, notably for employment insurance and CNESST coverage (officers are not covered automatically). Check your situation with Revenu Québec, the CRA or an accountant.

According to Revenu Québec, when you hire someone you must ask the employee: • to give you their social insurance number (SIN); • to complete and return form TP-1015.3, Source Deductions Return. You must require the social insurance card or SIN confirmation letter within 30 days after the employee starts work. Enter the surname, given name and SIN exactly as they appear on it, including on the RL-1 slip. Even if an employee has no SIN or refuses to give it, you must still withhold and pay Québec Pension Plan (QPP) and Québec Parental Insurance Plan (QPIP) contributions on their eligible salary. At the federal level, the employee also completes the tax credit forms required by the CRA: see the CRA employer's guide to find out which ones apply in Quebec.

Revenu Québec: if you are a new employer and pay or plan to pay a salary, you must register for source deductions. You can do so with the online service for registering a new business (if you are not registered for any Revenu Québec file), with the registration service in My Account for businesses (if you are already registered for a file, such as the sales tax file), or with form LM-1, Application for Registration. If a payroll service company handles your remittances, it must use your file number, not its own. CRA: you must also open a payroll program account before the due date of your first remittance. According to the CRA, that first remittance is due by the 15th of the month after the month you started making payroll deductions, unless the CRA assigns you a different frequency. The CRA's example: an employee hired on March 11 and paid on March 25 means a first remittance due April 15. If you did not open an account before hiring, you still have to calculate and remit the deductions on time. The two registrations are separate: in Quebec, an employer generally has obligations to both agencies.

According to the CNESST, you must register if you hire at least one worker, full time or part time, and have an establishment in Quebec. You have 60 days from your first worker's first day of work to do so, and you can register up to 30 days before they start if you know the date. Registering after the 60-day period means late registration fees. Some people, such as officers and volunteers, are not covered automatically, but optional coverage can be requested at registration. You must also register if you hire a self-employed worker who is considered a worker for CNESST purposes. CNESST registration is separate from the RL-1 and the T4.

On each pay, the employer withholds the required amounts (Quebec income tax, federal income tax and employee contributions to the applicable plans, such as the QPP, the QPIP and employment insurance) and pays its own employer contributions. According to Revenu Québec, as a general rule, the employer periodically remits to it the Quebec income tax and the QPP and QPIP contributions it withholds, along with its own employer QPP, QPIP and Health Services Fund (HSF) contributions and, if applicable, the occupational health and safety insurance premium. The contribution related to labour standards and, if applicable, the contribution to the Workforce Skills Development and Recognition Fund (WSDRF) are due no later than the last day of February of the following year. Federal income tax and employment insurance (employee and employer shares) are remitted to the CRA, separately. Rates, maximums and tables change every year: use the official guides and calculation tools from Revenu Québec and the CRA for the current year, or payroll software. Remittance frequency depends on your situation and is communicated by each agency. Keep accurate payroll records (each employee's identity and SIN, amounts paid, deductions, remittances): they are what you use to complete the RL-1 and T4 at year end. To see how deductions affect an employee's pay, our Quebec net pay calculator gives an estimate. It does not replace the official tables.

According to Revenu Québec, an employer that pays salaries must complete and file RL-1 slips, give a copy to each employee, and file the RLZ-1.S summary (Sommaire 1). The Guide to Filing the RL-1 Slip (RL-1.G) describes the amounts and information to report. Deadline: as a general rule, no later than the last day of February of the following year, and the employee copies must be provided within the same time. For 2025, that date fell on a Saturday, so Revenu Québec accepted filings until Monday, March 2, 2026. For 2026, February 28, 2027 falls on a Sunday: check Revenu Québec's notice on the applicable deadline. Penalties (Tax Administration Act): among others, for late filing, and if you file more than 5 slips without sending them over the Internet. A $100 penalty also applies if required information is omitted, unless it concerns an employee's identity and you made reasonable efforts to obtain it. In My Account for businesses, you can subscribe to an email reminder of the summary deadline.

At the federal level, the employer files the T4 information return (T4 slips and the T4 Summary) and gives a slip to each employee. The CRA's RC4120 guide explains how to complete the slips. In Quebec, the T4 does not replace the RL-1: an employer generally files both. Deadline: according to the CRA, the last day of February following the calendar year. If that date falls on a Saturday, Sunday or a public holiday recognized by the CRA, the return is considered filed on time if the CRA receives it on the next business day. If an employee leaves during the year, the deadline does not change, but the CRA suggests giving them their slip when they leave. If the business stops operating, the return is due within 30 days after the end of operations. Penalties: for a late T4 return, the CRA's administrative policy for small businesses sets a flat $100 penalty for 1 to 5 late slips, then higher per-day amounts depending on the number of slips (see the CRA's table). Penalties may also apply if slips are not filed in the required format.

1. Confirm the person is an employee (facts of the working relationship). 2. Register for source deductions with Revenu Québec. 3. Open a CRA payroll program account before your first remittance is due. 4. Register with the CNESST within 60 days of the first day of work. 5. Get the SIN (within 30 days) and form TP-1015.3, plus the applicable federal forms. 6. Withhold and remit each period using the year's tables, and keep payroll records. 7. In January and February: file the RL-1 slips and RLZ-1.S summary, the T4 slips and T4 Summary, and give employees their copies before the deadline. If you also invoice clients, payroll is a separate task from invoicing: see our comparison of invoicing software for Quebec freelancers.