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SSTEVE WOLOZ & TEVE WOLOZ & ASSOCIATES INC.ASSOCIATES INC.

MANAGEMENT CONSULTANTSMANAGEMENT CONSULTANTSwww.swaassoc.com

Complying with

1% Law (Loi du 1%).

•

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IntroductionIntroduction

All Quebec Companies With Payroll All Quebec Companies With Payroll > $ 1,000,000> $ 1,000,000 Must Invest 1 % Of Payroll In Training Must Invest 1 % Of Payroll In Training Failure = Pay TaxFailure = Pay Tax Tax Payable Feb 28 Tax Payable Feb 28 ““Sommaire Des Retunues De L’employer”Sommaire Des Retunues De L’employer”

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Objectives of the ActObjectives of the Act

To improve the skills and qualifications of To improve the skills and qualifications of workersworkers

To promote employment, labour To promote employment, labour adjustment, employment integration and adjustment, employment integration and workforce mobilityworkforce mobility

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Responsibilities of Employers Subject To Responsibilities of Employers Subject To

The ActThe Act

For each calendar year (January to December) For each calendar year (January to December) TO INVEST TO INVEST at least 1% of the enterprise’s total payroll in at least 1% of the enterprise’s total payroll in

trainingtraining TO DECLARE TO DECLARE the amounts invested in training to the the amounts invested in training to the

Ministère du Revenu du QuébecMinistère du Revenu du Québec——using the form using the form ““Summary of Source Deductions and Employer Summary of Source Deductions and Employer ContributionsContributions”—”—by no later than February 28 each yearby no later than February 28 each year

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Responsibilities of Employers Responsibilities of Employers Subject To The ActSubject To The Act

If an employer has not invested the equivalent of 1% of its total If an employer has not invested the equivalent of 1% of its total

payroll in training, it must payroll in training, it must REMIT the difference to the MRQ,REMIT the difference to the MRQ, which which deposits that amount in the Workforce Skills Development and deposits that amount in the Workforce Skills Development and Recognition FundRecognition Fund

PROVIDE Emploi-QuébecPROVIDE Emploi-Québec with general information on its investment with general information on its investment in trainingin training——using the using the “F“Formulaire à remplir par l’employeurormulaire à remplir par l’employeur”—”—by no by no later than April 30 each yearlater than April 30 each year

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Eligible Training Main CriterionEligible Training Main Criterion

Training Must Improve Employee Training Must Improve Employee QualificationQualification

Training Must be According to Formal Training Must be According to Formal Plan Plan

Training Must Be Correctly Training Must Be Correctly

Documented and Accounted Documented and Accounted

CATEGORIES OF ELIGIBLE EXPENDITUREStraining costssalary of employees who give or receive trainingsalaries and costs involved in training supportDOCUMENTS TO BE KEPT invoices and receipts record for entering salaries other documents, depending on the means chosen

Accredited byEmploi-Québec(art. 6 (2))

Training service(single employer and multi-employer)

Educational institution recognized by the Ministère de l’Éducation

(art. 6(1))

Professional order governed by the Professional Code

(art. 6(3))

Workshop, convention or seminar(R.1, art. 1(23))

Trainer (individual)

Emploi-Québec WorkplaceApprenticeship Program

Contribution to the training fundadministered by the Commission de laconstruction du Québec(art. 12)

Training given under a training plan established by an enterprise(art. 6 (4))

Training plan subject to employer-union agreement (art. 9)

Training organized by an association(R.1, art. 1 (26))

Training body

(including NPO)

training mutual recognized by Emploi-Québec(art. 8)

Eligibible Means of Training Eligibible Means of Training

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Must be based on a training plan that

• Indicates the specific length of on-the-job training

• be coordinated by a training service accredited by Emploi-Québec (art. 6.2)

• Or

• meet the eligibility requirements of (art. 6.4)

• Or

• be based on an employer-union agreement (art. 9)

On the Job Task Training On the Job Task Training

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On The Job Training: Key ComponentsOn The Job Training: Key Components

Transfer Of KnowledgeTransfer Of Knowledge

Transfer Of AbilitiesTransfer Of Abilities

Transfer Of AttitudesTransfer Of Attitudes

Related To The Exercises Of New Tasks In Related To The Exercises Of New Tasks In The Realm Of The Given JobThe Realm Of The Given Job

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On The Job Training: Caution On The Job Training: Caution

“ “ L’entrainement A La Tache L’entrainement A La Tache

Ne Vise Pas Ne Vise Pas

L’atteindre De La Pleine ProductiviteL’atteindre De La Pleine Productivite

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Critical Qualification: Reasonable HoursCritical Qualification: Reasonable Hours

Our Experience: 50 + / - 25 Hrs.Our Experience: 50 + / - 25 Hrs. Safe and Normal Safe and Normal

However ; No fixed limitHowever ; No fixed limit

Hrs. Must Be Well ExplainedHrs. Must Be Well Explained

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On The Job Training RecipientsOn The Job Training Recipients

New EmployeeNew Employee

Existing Employee Due To:Existing Employee Due To:• Job ReassignmentJob Reassignment

• Technological ChangeTechnological Change

• Modification Of Production ProcessModification Of Production Process

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II Suggested Templates Suggested Templates

To Track and Record TrainingTo Track and Record Training

Overall Plan Description Overall Plan Description Turnover SummaryTurnover SummaryIndividual Training SummaryIndividual Training SummaryGroup Training SummaryGroup Training SummaryConsultant’s Training SummaryConsultant’s Training SummaryExpense SummaryExpense SummaryDiploma SummaryDiploma SummaryOverall Training SummaryOverall Training Summary

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Documentation Components Documentation Components re Training Plans re Training Plans

1: Training Tools1: Training Tools

2: Teaching Methods2: Teaching Methods

3: Skills To Be Acquired3: Skills To Be Acquired

4: Training Exercises4: Training Exercises

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Documentation Components Documentation Components re Training Plans ( Cont.) re Training Plans ( Cont.)

55: Training Stages ( Hours/Stage): Training Stages ( Hours/Stage)

6: Training Graphs6: Training Graphs

7: Training Milestones7: Training Milestones

8: Quality Guidelines8: Quality Guidelines

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On The Job Training Eligible Expenses On The Job Training Eligible Expenses

Salaries Of Employees; TrainersSalaries Of Employees; Trainers

Training Supplies (Manuals ;Videos etc .)Training Supplies (Manuals ;Videos etc .)

Materials Consumed During Training (Not Materials Consumed During Training (Not Sold To Customer)Sold To Customer)

Expenses incurred for:the travel, lodging meals

of employees who give or attend a training activity.

Additional Eligible Training Expenditures Additional Eligible Training Expenditures

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Formal Training Plan Value Formal Training Plan Value

1: Facilitates Attracting Higher 1: Facilitates Attracting Higher Caliber Of EmployeeCaliber Of Employee

2: Assures Quality and Productivity2: Assures Quality and Productivity

3: Assures Customer Satisfaction3: Assures Customer Satisfaction

Loi du 1 % (Act to promote workforce skills development and recognition)

Règlement sur les dépenses de formation admissibles (Regulation respecting eligible training expenditures)

General Guide – Act to Foster the Development of Manpower Training

Guide de présentation d’une demande de subvention au FDRCMO

Guide – Règlement sur les organismes formateurs, les formateurs et les services de formation (Guide – Regulation respecting the accreditation of training bodies, training instructors and training services)

Directory of trainers accredited by Emploi-Québec

Publications Available Publications Available

www.emploiquebec.net

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Website and Telephone #Website and Telephone #

Loi Sur les CompetencesLoi Sur les Competences http://emploiquebec.net/entreprises/http://emploiquebec.net/entreprises/

formation/loi-competences/index.aspformation/loi-competences/index.asp

Tel: 514-725-5221Tel: 514-725-5221 Fax: 514-725-4311Fax: 514-725-4311

swaaassoc.com: areas of practiceswaaassoc.com: areas of practice

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Conclusion: Conclusion: 1% Law (Loi du 1%). 1% Law (Loi du 1%).

Your Most Valuable ResourceYour Most Valuable Resource

Human Capital (Resource)Human Capital (Resource)

Investing in Training Pays Investing in Training Pays