These deductions are made from any income associated with work income, benefits paid under the Employment Insurance Act and employment assistance allowances. There are no deductions made in the case of wage loss replacement plans. The payer may be an employer, a public or private organization or any person who pays income, earnings or pecuniary benefits to a recipient.
Work income is calculated by deducting the following therefrom or, in the case of income from self-employment, from net income:
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MANDATORY STATUTORY DEDUCTIONS for purposes of income tax, unemployment insurance, the Quebec Pension Plan, a mandatory pension fund or union dues, including a mandatory deduction for insurance;
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statutory REDUCTIONS made by a government agency to COMPENSATE for an overpayment it made, or as a penalty;
However, when a recipient's SALARY is GARNISHEED, the amount of the salary prior to the garnishment is included.
Similarly, a salary amount deducted as vacation pay (e.g. for construction workers) is included. However, this amount must not be included as income a second time when the recipient later receives his or her vacation pay (refer to 5.3.2.4).
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EXPENSES RELATED TO EMPLOYMENT, to the lesser of $25 or 6% of monthly employment income. Each adult member of a family who holds employment is entitled to this deduction.
This deduction does not apply to SELF-EMPLOYMENT income, as a self-employed worker does not hold employment. The holding of employment implies the existence of an employer-employee relationship. This deduction is not granted to self-employed workers, who can deduct the expenses related to the performance of their work from their income to obtain their net income, which alone is considered.
Nor is the deduction granted in respect of income from the office of mayor, municipal councillor or school commissioner as the incumbents of such offices receive expense allowances that are not included in the calculation of their income.
The deduction does not apply to income from babysitting when the recipient looks after children in his or her own home.
Certain deductions are not accepted (deductions for a personal retirement plan, garnishments, pay advances, etc.) and are included in employment income.