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Work in Ontario & Live in Quebec

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Feb 24, 2008
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Work in Ontario & Live in Quebec

So I created a thread on this topic about 2 1/2 years ago ( why-do-people-who-work-one-province-but ... es-694403/ ). I asked some questions on the 2nd page that didn't necessarily get answered, but was content with the information I received as I decided to just increase my RRSP contributions as to null the balance I would have to pay to Quebec. I am now revisiting this topic as I have recently started working for a new employer (still in Ottawa) but my salary has increased by $11K + Bonuses.

As mentioned in the other thread, I live in Gatineau (Quebec) and work in Ottawa (Ontario). When I get paid, my payroll deductions are based on the province I work in (Canada/Ontario). The part I am clear about is when I file taxes. There is a section that is always presented to me is if I want to transfer amount that was paid to Ontario to be paid to Quebec (to a maximum\default amount of 45%).

Lets say over the course of the year I paid $3000 to Ontario in taxes. Using the default 45%, means $1350 can be transferred to Quebec. What has happened with the other 55% ($1650)? Does this still stay with Ontario?

Using the figure above ($3000 to Ontario). Lets suppose someone with the same income but works/lives in Quebec has paid $3500 to Quebec in payroll deductions. Since I have only paid $3000 to Ontario and 45% can only be transferred to Quebec ($1350), does that mean I must pay the difference ($3500 - $1350) = $2150 when I file?

Is there any form I can submit to my HR to have Quebec deductions be taken directly from my payroll deductions?

I recall years ago working with someone who showed me his paystub (he was a resident of Quebec too) and I noticed he had lines for QPP and I think other Quebec deductions taken from his pay cheque as we worked in Ontario. He was not sure himself how he had this happened. After speaking with HR from my previous employer, they say this cannot be done and just asked that I fill out the form to request more taxes to be taken from my paycheque. But I do not think having more taxes from Federal/Ontario be taken from my pay will be the solution. So I left it alone, and now I'm here working for another employer wanting to revisit this.

Does anyone have any knowledge/experience on this topic?

djino
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anyone? :confused:

djino
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Sep 27, 2004
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Ottawa
djino wrote: So I created a thread on this topic about 2 1/2 years ago ( why-do-people-who-work-one-province-but ... es-694403/ ). I asked some questions on the 2nd page that didn't necessarily get answered, but was content with the information I received as I decided to just increase my RRSP contributions as to null the balance I would have to pay to Quebec. I am now revisiting this topic as I have recently started working for a new employer (still in Ottawa) but my salary has increased by $11K + Bonuses.

As mentioned in the other thread, I live in Gatineau (Quebec) and work in Ottawa (Ontario). When I get paid, my payroll deductions are based on the province I work in (Canada/Ontario). The part I am clear about is when I file taxes. There is a section that is always presented to me is if I want to transfer amount that was paid to Ontario to be paid to Quebec (to a maximum\default amount of 45%).

Lets say over the course of the year I paid $3000 to Ontario in taxes. Using the default 45%, means $1350 can be transferred to Quebec. What has happened with the other 55% ($1650)? Does this still stay with Ontario?

djino
Your other 55% goes to CRA. You will get refund if it is over the tax you should pay to CRA.

Using the figure above ($3000 to Ontario). Lets suppose someone with the same income but works/lives in Quebec has paid $3500 to Quebec in payroll deductions. Since I have only paid $3000 to Ontario and 45% can only be transferred to Quebec ($1350), does that mean I must pay the difference ($3500 - $1350) = $2150 when I file?

djino
right
Is there any form I can submit to my HR to have Quebec deductions be taken directly from my payroll deductions?


djino
I doubt. Even if you can, why would you? It is against your favor. Why don't you keep the money till the beginning of next year while you can? Otherwise, you will have to pay Revenu Quebec upfront.

I recall years ago working with someone who showed me his paystub (he was a resident of Quebec too) and I noticed he had lines for QPP and I think other Quebec deductions taken from his pay cheque as we worked in Ontario. He was not sure himself how he had this happened. After speaking with HR from my previous employer, they say this cannot be done and just asked that I fill out the form to request more taxes to be taken from my paycheque. But I do not think having more taxes from Federal/Ontario be taken from my pay will be the solution. So I left it alone, and now I'm here working for another employer wanting to revisit this.

Does anyone have any knowledge/experience on this topic?


djino
There are so many of them. Both my wife and me are working in Ottawa but we are living in Quebec.
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JayJJJ wrote: Your other 55% goes to CRA. You will get refund if it is over the tax you should pay to CRA.
If you are correct, then people who live in Quebec and work in Ontario are paying MORE taxes than people who either work/live in Quebec or work/live in Ontario. Since according to my example you quoted, 55% of what I paid to Ontario stays with Ontario (or CRA) and I gotta make up that 55% by also paying Quebec.

Is there any link that explains this or why that is?
JayJJJ wrote: There are so many of them. Both my wife and me are working in Ottawa but we are living in Quebec.

You have any link to any forms online?

djino
Member
Sep 27, 2004
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Ottawa
djino wrote: If you are correct, then people who live in Quebec and work in Ontario are paying MORE taxes than people who either work/live in Quebec or work/live in Ontario. Since according to my example you quoted, 55% of what I paid to Ontario stays with Ontario (or CRA) and I gotta make up that 55% by also paying Quebec.

Is there any link that explains this or why that is?



You have any link to any forms online?

djino

I am correct AND

You are absolutely wrong. Even if you are living/working in Ontario, you still have to pay Federal tax (CRA) and provincial tax. Find tax return package and read it yourself carefully.

Living in Quebec means more provincial tax. At the same time, there are a lot of benefits to enjoy, childcare, sports utilities, etc.
Member
Sep 27, 2004
330 posts
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Ottawa
djino wrote: If you are correct, then people who live in Quebec and work in Ontario are paying MORE taxes than people who either work/live in Quebec or work/live in Ontario. Since according to my example you quoted, 55% of what I paid to Ontario stays with Ontario (or CRA) and I gotta make up that 55% by also paying Quebec.

Is there any link that explains this or why that is?



You have any link to any forms online?

djino
No matter which province youa are living in, you have to pay Federal tax (CRA), which is the same for all provinces, AND provincial tax, which is different from one province to another.

How could you get this conclusion?

I bet you never filed tax return by yourself before.
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Apr 23, 2009
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My understanding is that your payroll deductions are based on your province of work, so you'll pay Federal and Ontario income tax. When you file your federal return, you'll be refunded the provincial portion which should cover most of your Quebec tax amount owing. However, provincial tax rates in Quebec are higher so you can submit a revised TD1 to HR to increase the witholding tax to cover all of your Quebec taxes owing.

(I find it confusing by referring the references to "Ontario" taxes. Think of it this way: 100% of your payroll deductions for tax goes to federal -> CRA takes their cut -> remainder is refunded to you -> you pay Quebec provincial taxes out of that refund.)
Sr. Member
Nov 3, 2009
599 posts
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Hi Djino...

I am in the same position as you are (work in Ontario, live in Quebec) and have roughly the same income.

The folks above are correct.

NONE of our money goes to the Ontario government in the form of income tax.

Here's one way to think about it (not accurate, but illustrates well):
Our pay has deductions bi-weekly based on the Ontario + Federal rate.
That pay goes into a "holding bucket". It's not allocated to Ontario or the Feds, but is held in trust by the feds.
At the end of the year, when we file our Federal taxes, we owe a particular amount for that year.
You can indicate on your federal return that up to 45 percent of the "holding bucket" gets transferred to Revenue Quebec. You could easily make that "0%" which means the total amount of non-federal taxes withheld comes back as a refund from the Feds (and you in turn would have to cut a cheque to RQ).
The amount of our federal taxes are also paid out of our "holding bucket".
Whatever is left in the "holding bucket" is returned to us as a Federal refund.
We then have to pay whatever we still owe to Revenue Quebec.

Whereas an Ontarian would have a combined return, and the "holding bucket" contents would go to the feds as well as Ontario.

What I find particularly annoying is that I can't just specify whatever percentage I want to be transferred to RQ instead of being limited to 45%, which means I have to get a federal refund and cut a cheque.

If you still have any questions, feel free to drop me a PM and we can have a quick phone call.
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Thanks Beachdown & Scott M!!,

That now makes perfect sense to me.


Just the whole process makes it appear as if I'm still paying Ontario when living in Quebec and having to pay Quebec on top of that.

Question... Is there a Quebec payroll deductions online calculator/etc that I could use to simulate what my deductions would be if I was working in Quebec? Just so that I could fill out that TD1 (I think that's the name) form and ask that they deduct more taxes each pay based on the simulation and not have to worry about how much I owe Quebec when filling taxes at the end of the year.

djino

EDIT: As I mentioned in the first post, an old friend of mine had Quebec deductions withdrawn from his paycheque (Ontario Employer). Is there some type of form I could submit to have the same deductions taken from my pay?
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Apr 23, 2009
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South of Ottawa
This is a pretty detailed calculator:

http://www.taxtips.ca/calculators/qctaxcalc.htm

As for having QPP deducted, it depends on your company. Payroll may not want to and I don't think they have to. If they do, I imagine they would also have to provide an RL1 for your provincial return.
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Beachdown wrote: This is a pretty detailed calculator:

http://www.taxtips.ca/calculators/qctaxcalc.htm

hmmm.. this appears to be a income tax calculator instead of a payroll deductions calculator (if one even exist). Was hoping for something to be able to figure out what someone living/working in Quebec with my income would need to pay each pay period so that I can then have my employer take out the same amount of taxes.

djino

EDIT: I think I found something!
Deal Fanatic
Apr 23, 2009
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South of Ottawa
djino wrote: hmmm.. this appears to be a income tax calculator instead of a payroll deductions calculator (if one even exist). Was hoping for something to be able to figure out what someone living/working in Quebec with my income would need to pay each pay period so that I can then have my employer take out the same amount of taxes.

djino

EDIT: I think I found something!

Well, it is an income tax calculator. Detailed enough that you can see federal and provincial totals owing based on your income. Just plug in last year's amounts from your T4, see how much is being deducted of your pay this year and make the adjustment.
Jr. Member
Jan 17, 2007
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To the OP...
I'm in the situation. I've got it arranged with my employer to take off an additional amount off for federal taxes (about $100-$200 based on your salary). That way, at the end of the year, I have a large refund from the federal government, which is then transferred to my balance owing to the Quebec government. I'm with the City of Ottawa and they allow it.
Jr. Member
Apr 6, 2010
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Montreal
Djino, I use this calculator to determine how much of my pay goes in taxes in QC:

http://impot.net/fr/entreprises/das/index.html

The tool is in French though, I have not found an English version on this website. It has very accurate results when I compare it with my pay stubs.
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Mar 30, 2004
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djino wrote:
EDIT: As I mentioned in the first post, an old friend of mine had Quebec deductions withdrawn from his paycheque (Ontario Employer). Is there some type of form I could submit to have the same deductions taken from my pay?

Outside some Federal Government departments, i've never seen this before.
Sr. Member
Dec 6, 2006
674 posts
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Scott M. wrote: You can indicate on your federal return that up to 45 percent of the "holding bucket" gets transferred to Revenue Quebec. You could easily make that "0%" which means the total amount of non-federal taxes withheld comes back as a refund from the Feds (and you in turn would have to cut a cheque to RQ).

Please note that doing the above will likely result in Revenu Quebec requesting you to pay by installments (in advance) based on what they think you owe them if your tax owing is over a given amount.

Off the top of my head, I think they ask for installments if you owed them more than 1,500$ in the previous fiscal year.

My advice to Djino would be simply be to take RRSPs to cover the difference(estimate the difference with a calculator). You will be fine as long as you owe them less than the 1,500$ limit.
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Sep 20, 2005
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guigz wrote: Please note that doing the above will likely result in Revenu Quebec requesting you to pay by installments (in advance) based on what they think you owe them if your tax owing is over a given amount.

Off the top of my head, I think they ask for installments if you owed them more than 1,500$ in the previous fiscal year.

My advice to Djino would be simply be to take RRSPs to cover the difference(estimate the difference with a calculator). You will be fine as long as you owe them less than the 1,500$ limit.
This is correct.. I talked to Revenue Quebec as i did this the first year I moved to la belle province. Got a letter 2 months after filing stating they wanted installments at 550$ quarterly because my tax bill exceeded 1800$ (apparently there is a law in this province that states you must pay quarterly if you owe more than this). They said that if you use the transfer option and transfer anything, they will bypass the installment request.

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