Text reads, “The Québec Budget Plan: what you need to know now (and later!)”.

Dig into the Québec Budget Plan: what’s in place, what’s coming soon

Oct 13, 2023

Iva Nittolo

Regional Sales Manager | Payworks

With over 30 years of experience in banking and sales, she brings to her role a serious knack for numbers, knowledge of market development, and an empathetic and fun-loving approach to managing her team. Together, they’re proud to “put the customer at the forefront” and identify solutions for their clients’ evolving needs and challenges. Directrice des ventes, Québec | Payworks

Iva a rejoint l’entreprise en 2023 en tant que Directrice des ventes régionales au Québec. Avec plus de 30 ans d’expérience dans la banque et la direction des ventes, son goût très prononcé pour les chiffres, son enthousiasme pour le développement du marché et son approche aussi empathique qu’amicale en matière de gestion d’équipe, elle apporte une réelle plus-value à l’entreprise. L’objectif : « mettre le client au premier plan » avec plaisir et trouver des solutions pour répondre aux défis uniques de chaque client.

If you’re a Québec-based business or an organization with employees working in Québec, you may have already caught this past spring’s presentation of the Québec Budget Plan. Some changes are already in place; others are a few years down the road, but good to get your head around now so that you know what’s coming!

Payworks is committed to keeping you confident and compliant on all things payroll, and today we’re breaking down three of these recent and upcoming changes.

1. Already in place: Changes to personal income tax and lump sum tax rates as of July 1, 2023

The first two brackets of Québec’s personal income tax table both saw a single percentage-point decrease as of July 1, 2023. There was also a single percentage-point decrease in tax rates for bonuses, retroactive payments and similar lump-sum payments for low wage earners under $17,183.

Payworks clients: upon logging into Payroll, as of July 1, 2023 all new rates have been automatically applied... saving you time and the stress of retroactive corrections when year-end rolls around!

2. Starting in 2024: Québec Pension Plan (QPP) contribution changes

As of January 1, 2024, Québec employees aged 65 or over can now choose to stop paying Québec Pension Plan (QPP) contributions if they’re also receiving a QPP or Canada Pension Plan (CPP) retirement pension. Essentially, this now aligns QPP with CPP.

The adjustment of the contribution age limit from 70 to 72 is also important to note, and is effective as of January 1 of the year the employee turns 73, as opposed to the month they turn 73 - another change!

Not sure to whom on your staff this is relevant? With Payworks’ HR, all your employee data is securely stored in one place!

3. Down the road: Revenu Québec’s electronic payroll service

Representatives from Payworks are pleased to participate in the National Payroll Institute (NPI)’s committee working with Revenu Québec (RQ) on the development of an exciting future service: the ability to digitally transmit data directly from an employer’s payroll system to RQ each pay period.

Behind the scenes, our team is working diligently to ensure we’re ready for a seamless transition once this technology has been launched. We’ve got you covered!

Looking to stay up-to-date all year round on the payroll legislation that’s most relevant to your business? Sign up to receive the current (and future!) versions of our Payroll Guide for Canadian Business - helping you navigate everything from labour standards to pensionable earnings and more: https://www.payworks.ca/landing-pages/campaigns/payroll-guide.

Key topics in this article:

Resources Payroll Resources Finance Business Owner SME Franchisee Hospitality Payroll Management Legislation

These articles are produced by Payworks as an information service. They are not intended to substitute professional legal, regulatory, tax, or financial advice. Readers must rely on their own advisors, as applicable, for such advice.

Dig into the Québec Budget Plan: what’s in place, what’s coming soon

1. Already in place: Changes to personal income tax and lump sum tax rates as of July 1, 2023

2. Starting in 2024: Québec Pension Plan (QPP) contribution changes

3. Down the road: Revenu Québec’s electronic payroll service

Seeing is believing!