Workforce skills development contribution (Quebec)

A buyer of a Quebec business with a large payroll meets this in the seller’s annual filings and training records. The duty belongs to the employer, so it matters to whoever runs payroll after closing. See what employment liabilities a buyer inherits.

How the Act works

Section 3 of the Act requires an employer whose total payroll for a calendar year exceeds the regulated amount to allot a minimum share of that payroll to eligible training expenditures, subject to the exemptions the Commission may make by regulation under section 20. Under section 14, if its eligible expenditures are lower, it must pay the difference into the Fund. The Commission des partenaires du marché du travail says employers report their payroll and eligible training expenses to Revenu Québec, except holders of a training initiative quality certificate.

What to check or ask

• Whether the seller’s payroll put it within the Act in recent years.
• The annual returns, and whether any shortfall was paid.
• Whether the seller holds a training initiative quality certificate.
• How payroll will be reported after closing, for example under CPP contributions or the Quebec equivalents.