1. Rev 5: January 31, 2013 1 STEVE WOLOZ & ASSOCIATES INC. MANAGEMENT CONSULTANTS www.swaassoc.com Complying with 1% Law (Loi du 1%).

2. Rev 5: January 31, 2013 2 Introduction 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 Tax Failure = Pay Tax Tax Payable Feb 28 Tax Payable Feb 28 “Sommaire Des Retunues De L’employer” “Sommaire Des Retunues De L’employer”

3. Rev 5: January 31, 2013 3 Objectives of the Act Objectives of the Act  To improve the skills and qualifications of workers  To promote employment, labour adjustment, employment integration and workforce mobility

4. Rev 5: January 31, 2013 4  Responsibilities of Employers Subject To The Act  Responsibilities of Employers Subject To The Act For each calendar year (January to December) For each calendar year (January to December)  TO INVEST at least 1% of the enterprise’s total payroll in training  TO DECLARE the amounts invested in training to the Ministère du Revenu du Québec—using the form “Summary of Source Deductions and Employer Contributions”—by no later than February 28 each year

5. Rev 5: January 31, 2013 5 Responsibilities of Employers Subject To The Act Responsibilities of Employers Subject To The Act  If an employer has not invested the equivalent of 1% of its total payroll in training, it must REMIT the difference to the MRQ, which deposits that amount in the Workforce Skills Development and Recognition Fund  PROVIDE Emploi-Québec with general information on its investment in training—using the “Formulaire à remplir par l’employeur”—by no later than April 30 each year

6. Rev 5: January 31, 2013 6 Eligible Training Main Criterion Eligible Training Main Criterion Training Must Improve Employee Qualification Training Must Improve Employee Qualification Training Must be According to Formal Plan Training Must be According to Formal Plan Training Must Be Correctly Documented and Accounted Training Must Be Correctly Documented and Accounted

7. CATEGORIES OF ELIGIBLE EXPENDITURES  training costs  salary of employees who give or receive training  salaries and costs involved in training support DOCUMENTS TO BE KEPT  invoices and receipts  record for entering salaries  other documents, depending on the means chosen Accredited by Emploi-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 Workplace Apprenticeship Program Contribution to the training fund administered by the Commission de la construction 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 7 Rev 5: January 31, 2013

8.  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 8 Rev 5: January 31, 2013

9. 9 On The Job Training: Key Components On The Job Training: Key Components Transfer Of Knowledge Transfer Of Knowledge Transfer Of Abilities Transfer Of Abilities Transfer Of Attitudes Transfer Of Attitudes Related To The Exercises Of New Tasks In The Realm Of The Given Job Related To The Exercises Of New Tasks In The Realm Of The Given Job

10. Rev 5: January 31, 2013 10 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 Productivite L’atteindre De La Pleine Productivite

11. Rev 5: January 31, 2013 11 Critical Qualification: Reasonable Hours Critical Qualification: Reasonable Hours Our Experience: 50 + / - 25 Hrs. Our Experience: 50 + / - 25 Hrs. Safe and Normal Safe and Normal However ; No fixed limit However ; No fixed limit Hrs. Must Be Well Explained Hrs. Must Be Well Explained

12. Rev 5: January 31, 2013 12 On The Job Training Recipients New Employee New Employee Existing Employee Due To: Existing Employee Due To: Job ReassignmentJob Reassignment Technological ChangeTechnological Change Modification Of Production ProcessModification Of Production Process

13. Rev 5: January 31, 2013 13 I Suggested Templates To Track and Record Training Overall Plan Description Turnover Summary Individual Training Summary Group Training Summary Consultant’s Training Summary Expense Summary Diploma Summary Overall Training Summary

14. Rev 5: January 31, 2013 14 Documentation Components re Training Plans Documentation Components re Training Plans 1: Training Tools 1: Training Tools 2: Teaching Methods 2: Teaching Methods 3: Skills To Be Acquired 3: Skills To Be Acquired 4: Training Exercises 4: Training Exercises

15. Rev 5: January 31, 2013 15 Documentation Components re Training Plans ( Cont.) 5 : Training Stages ( Hours/Stage) 5 : Training Stages ( Hours/Stage) 6: Training Graphs 6: Training Graphs 7: Training Milestones 7: Training Milestones 8: Quality Guidelines 8: Quality Guidelines

16. Rev 5: January 31, 2013 16 On The Job Training Eligible Expenses On The Job Training Eligible Expenses Salaries Of Employees; Trainers Salaries Of Employees; Trainers Training Supplies (Manuals ;Videos etc.) Training Supplies (Manuals ;Videos etc.) Materials Consumed During Training (Not Sold To Customer) Materials Consumed During Training (Not Sold To Customer)

17.  Expenses incurred for:  the travel,  lodging  meals  of employees who give or attend a training activity.  Additional Eligible Training Expenditures 17 Rev 5: January 31, 2013

18. 18 Formal Training Plan Value Formal Training Plan Value 1: Facilitates Attracting Higher Caliber Of Employee 1: Facilitates Attracting Higher Caliber Of Employee 2: Assures Quality and Productivity 2: Assures Quality and Productivity 3: Assures Customer Satisfaction 3: Assures Customer Satisfaction

19.  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 www.emploiquebec.net 19 Rev 5: January 31, 2013

20. 20 Website and Telephone # Loi Sur les Competences Loi Sur les Competences http://emploiquebec.net/entrepris es/formation/loi- competences/index.asp http://emploiquebec.net/entrepris es/formation/loi- competences/index.asp Tel: 514-725-5221 Tel: 514-725-5221 Fax: 514-725-4311 Fax: 514-725-4311 swaaassoc.com: areas of practice swaaassoc.com: areas of practice

21. Rev 5: January 31, 2013 21 Conclusion: 1% Law (Loi du 1%). Your Most Valuable Resource Your Most Valuable Resource Human Capital (Resource) Human Capital (Resource) Investing in Training Pays Investing in Training Pays