What are my options?

Since 2014, many small and medium-sized enterprises (SME) in Quebec are required to offer a workplace retirement savings plan to their employees. Are you affected by this law?

A VRSP is only one of the many options available to small business owners in Quebec. There are other plans that might be better suited to your company than a VRSP.

The options below will help you maximize the advantages of having employees who are in better physical and financial health.

Ready to take action?

1-855-362-3086
SmallBusinessSavings@sunlife.com

> Online VRSP application

Comparative Table
 

Type of plan

Voluntary Retirement Savings Plan (VRSP)

Registered Retirement Savings Plan (RRSP)

Tax-Free Savings Account (TFSA)

Deferred Profit Sharing Plan (DPSP)

Advantages
  • No impact on total payroll
  • Low management fees
  • Quick and easy to set up
  • Flexibility
  • Savings can be used for something other than retirement  
  • A range of investment options
  • Allows employees to share the profits of the company
  • Contribution level may vary according to company profitability

 

Some things to consider
  • Limited investment options
  • Less flexibility
  • Available only in Quebec under VRSP legislation
  • Higher management fees
  • May not be offered on its own
  • Employee contributions are not permitted

Eligible employees

18 years of age or over
+ 1 year uninterrupted service
+ work solely in Quebec or work both in Quebec and outside Quebec for a Quebec employer or who are residents of Quebec and work outside Quebec for a Quebec employer

Employer's choice

Employer's choice +
18 years of age or over

Employer's choice.
Partners and specified shareholders (persons owning 10% or more of the issued shares of the corporation) and their immediate relations are not eligible.

Employer contributions

Employer contributions not required. Any employer contributions are not subject to payroll taxes.

Employer contributions not required. Payroll taxes apply to any employer contributions.

Employer contributions not required. Any employer contributions are considered contributions made by the employee with after-tax dollars. Payroll taxes and income tax apply to any employer contributions.

Employer contributions only and not subject to payroll taxes

Employee contributions

Before tax income up to the applicable contribution limits + Default rates as applicable according to legislation

Before tax income up to the applicable contribution limits

After tax income up to the applicable contribution limits

Not permitted

Compliance with VRSP Act

Yes, if offered to all eligible employees through payroll deductions

Not when offered on its own

To know more

Fact sheet

Support and tools for small business owners

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