The Québec government has just passed a bill creating Voluntary Retirement Savings Plans (VRSP). Are you an employer offering all your employees the opportunity to contribute to the Fonds de solidarité FTQ RRSP through payroll deduction? If so, you will not have to implement a VRSP.
What is a VRSP?
The objective of these new plans, which will be phased in starting in July 2014, is to encourage Québec workers to save for retirement. Businesses affected by the bill will have to offer their employees a VRSP. The deadline to meet this obligation is between December 31, 2016 and January 1, 2018, depending on the size of the business.
It should be noted that businesses that already offer an RRSP through payroll contribution, such as the Fonds de solidarité FTQ's payroll deduction, are exempted from this obligation.
The Fonds’ payroll deduction: advantageous for you and your employees
- Payroll deduction is easy to implement and free.
- A personalized turnkey support is offered to employers.
- If you contribute to your employees’ RRSP, you benefit from a payroll tax exemption.
- In addition to saving for retirement, your employees benefit from an additional 30% tax credit.
If you have any questions, please contact Employer Services.
The Employers’ Services team
1 888 385-3723
Monday to Friday 8:30 am to 4:30 pm
employeur@fondsftq.com