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Friday, March 22, 2019

Québec provincial budget

MEASURE CONCERNING INDIVIDUALS

Enhancement of the tax credit for experienced workers to bank on career extension

As of the 2019 taxation year, the tax credit for experienced workers will be renamed the tax credit for career extension.

To increase the presence of experienced workers in the labour market, various changes have been made to the tax credit in recent years. Essentially, these changes enhanced the tax credit for experienced workers either by lowering the age of eligibility or by increasing the maximum amount of eligible work income on which the tax credit was calculated. Firstly, the age of eligibility for the tax credit will be lowered to 60. The tax credit for career extension will thus be calculated on the same maximum amount of eligible work income for workers aged 60 to 64.

The Source Deductions Return form (TP-1015.3-V) will be modified to allow employees to request the tax credit for career extension.

Impact on payroll: We will advise you as soon as we obtain details on the application of this measure.

MEASURES CONCERNING BUSINESSES

Introduction of a refundable tax credit for SMBs to foster the retention of experienced workers

To encourage experienced workers to remain in or re-enter the labour market, the tax system grants them a tax credit that allows them to eliminate the income tax payable on a portion of their work income. To supplement this assistance granted to workers and to encourage SMBs to hire or retain workers aged 60 or over, the refundable tax credit to foster the retention of experienced workers will be introduced.

This refundable tax credit will be granted to qualified corporations that employ individuals aged 60 or over. It will be calculated on the employer contributions paid by the corporation in respect of such an employee. The rate of the refundable tax credit will vary based, firstly, on the individual's age and, secondly, the corporation's total payroll.

These amendments will be applicable in respect of a taxation year that ends after December 31, 2018.

Impact on payroll: We will advise you as soon as we obtain details on the application of this measure.

Changes to certain measures respecting tips

In 1997, various measures were introduced aimed at improving and regularizing the situation with respect to the reporting of tips in the restaurant and hotel sector. In order to partially offset the additional charges that employers in the restaurant and hotel sector must bear in respect of such tips, the tax system grants them a refundable tax credit.

These amendments will apply to indemnities for days of leave to fulfill family obligations or for days of leave for health reasons paid after December 31, 2018.

Impact on payroll: We will advise you as soon as we obtain details on the application of this measure.