Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction

1. Employer’s InteractiveAdministrative Guide (IAG) Regarding Payroll Deduction Revised : November 2003

2. Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Solidarity Fund QFL Monthly Remittances Tax Breaks Forms and Noticeof Change Exit

3. Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Solidarity Fund QFL Monthly Remittances Tax Breaks Forms and Noticeof Change About Us Our mission Exit

4. About Us Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Solidarity Fund QFL With close to 550,000 shareholders and net assets of $4.6 billion1,the Solidarity Fund QFL is the largest development capital corporation dedicated to SMEs in Québec. As the only organization of its kind, the Fund calls upon public savings and the solidarity of the Québec population to fulfill the mission it undertook upon its inception in 1983. About Us Our Mission 1 Shareholders, net assets as at June 30, 2003.

5. Our Mission Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction • Invest in undertakings yielding an economic impact in Québec and provide them with services in order to contribute to their development and to create, maintain or protect jobs. • Promote economic training for workers so they can increase their influence on the economic development of Québec. • Stimulate the Québec economy by making strategic investments that will be of benefit to Québec workers and undertakings. • Make workers aware of the need to save for retirement and encourage them to do so, as well as to participate in the development of the economy by subscribing Fund shares . Solidarity Fund QFL About Us Our Mission In pursuing its mission, the Fund strives to offer stable and reasonable long-term returns to its shareholders through a balanced distribution of assets between its job-creating investments and its marketable securities portfolio.

6. Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Solidarity Fund QFL Monthly Remittances Tax Breaks Forms and Noticeof Change Making Remittances to the Fund Your Reference Number Notice to Employers Remittance Notice Detailed Remittance List and Remittance List Access to our Secure Website Terms of Remittance Payment Procedure Payroll Processing Services Providers Exit

7. Making Remittances to the Fund Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Monthly Remittances Making remittances to the Fund is both simple and easy. To serve you better, we offer a wide range of modern and efficient tools (several means of transmission and mailing are available). Just choose the option that is the most convenient for you. What is more, we assure you that the processing of your monthly remittances will be done in a precise and confidential manner. Making Remittances to the Fund Your Reference Number Notice to Employers Remittance Notice Detailed Remittance List and Remittance List Access to our Secure Website Terms of Remittance Payment Procedure Payroll Processing Services Providers

8. Your Reference Number Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Monthly Remittances A five-digit reference number will be assigned to you by the Fund. Please refer to this number any time you communicate with the Fund in writing or by telephone. Making Remittances to the Fund Your Reference Number Notice to Employers Remittance Notice Detailed Remittance List and Remittance List Access to our Secure Website Terms of Remittance Payment Procedure Payroll Processing Services Providers

9. Notice to Employers Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Monthly Remittances You may choose to receive every month, by mail, by fax or via our Secure Website either a Remittance Notice, a Remittance List or a Detailed Remittance List(see specimens). Please read it carefully since this is the way we communicate with our 6,000 participating employers. Making Remittances to the Fund Your Reference Number Notice to Employers Remittance Notice Detailed Remittance List and Remittance List Access to our Secure Website Terms of Remittance Payment Procedure Payroll Processing Services Providers

10. Remittance Notice All employers who make monthly remittances receive a Remittance Notice. Please make sure that you include the tear off portion with your monthly remittance payments. This greatly facilitates our operations.

11. Detailed Remittance List and RemittanceList Most employers who make monthly remittances using the list of subscriptions provided by the Fund, receive the Detailed Remittance List. The employers must validate and correct all information, if need be. The Detailed Remittance List is then returned to the Fund with the tear off Remittance Notice portion.

12. Detailed Remittance List and RemittanceList Certain employers receive the Remittance List. These employers must fillout this form and return it to the Fund with the Remittance Notice tear off portion.

13. Access to Our Secure Website Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Monthly Remittances We can transmit your Notices and Remittance List via our Secure Website, and you only need to print them out. We can also transmit your Notices and Remittance List in an Excel format file where you may enter your information. If you are interested, please sign-up by email at remisedas@fondsftq.com or by fax at: (514) 383-2503. Making Remittances to the Fund Your Reference Number Notice to Employers Remittance Notice Detailed Remittance List and Remittance List Access to our Secure Website Terms of Remittance Payment Procedure Payroll Processing Services Providers

14. Terms of Remittance Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Monthly Remittances All payroll deductions made in the course of a month must be remitted to the Fund no later than the fifteenth (15th) day of the following month, in accordance with Section 27 of Act 192, an act to establish the Fonds de solidarité des travailleurs du Québec (F.T.Q.). In the event of any disruption of employment (illness, CSST, etc.),no payroll deduction will be made retroactively upon the employee’s return, unless any agreement to the contrary has been negotiated between the parties. Employees can cash out their bonuses, banked vacation, sick leave or overtime hours and contribute these amounts to the Fund’s RRSP. A specific remittance list must be submitted to us in such cases. Making Remittances to the Fund Your Reference Number Notice to Employers Remittance Notice Detailed Remittance List and Remittance List Access to our Secure Website Terms of Remittance Payment Procedure Payroll Processing Services Providers

15. Payment Procedure Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Monthly Remittances You may pay any owed amounts by: • Cheque payable to the Fonds de solidarité FTQ; • Direct deposit; • Electronic funds transfer (ETF), by Internet via your financial institution website (AccèsD Affaire, Clic paiement, etc.). Making Remittances to the Fund Your Reference Number Notice to Employers Remittance Notice Detailed Remittance List and Remittance List Access to our Secure Website Terms of Remittance Payment Procedure Payroll Processing Services Providers

16. Payroll Processing ServicesProviders Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Monthly Remittances Partnerships have been formed with the following payroll subcontractors: CGI (Banque Nationale);Service de paie Desjardins (SPD); Société GRICS;and Coba. If you do business with these providers, please contact them to be informed about the procedure to follow. Making Remittances to the Fund Your Reference Number Notice to Employers Remittance Notice Detailed Remittance List and Remittance List Access to our Secure Website Terms of Remittance Payment Procedure Payroll Processing Services Providers

17. Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Solidarity Fund QFL Monthly Remittances Tax Breaks Forms and Noticeof Change Tax Benefits of Fund Shares Government Authorizations Payroll Processing Services Providers Reference Documents Example of Payroll Calculations with Payroll Deduction Example of Payroll Calculations with Payroll Deduction and Employer Contribution Exit

18. Tax Benefits of Fund Shares Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Tax Breaks Upon buying Fund shares, your employees receive two tax credits reducing the income tax payable on the amount invested by 30%(15% Québec + 15% federal). These savings can go up to a maximum of $1,500 per year on a $5,000 investment, that is, 30% of $5,000. By registering their shares in the Fund’s RRSP, your employees may benefit from double tax savings, since the 30% credit is added on the income tax reduction obtained from the usual RRSP deduction granted to any traditional RRSP. Tax Benefits of Fund Shares Government Authorizations PayrollProcessing Services Providers Reference Documents Example of Payroll Calculations with Payroll Deduction Example of Payroll Calculations with Payroll Deduction and Employer Contribution

19. Government Authorizations Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Tax Breaks The Fund has obtained an authorization from the Québec and federal governments for all participating employers to reduce the amount of tax withholding from each pay for shareholders subscribing by payroll deduction. Therefore, employers do not have to act in this matter. Tax Benefits of Fund Shares Government Authorizations PayrollProcessing Services Providers Reference Documents Example of Payroll Calculations with Payroll Deduction Example of Payroll Calculations with Payroll Deduction and Employer Contribution

20. Payroll Processing Services Providers Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Tax Breaks Most companies that offer payrollprocessing services have the means to process payroll deductions as well as tax breaks with respect to Fund shares. We strongly advise that you carry out a payroll test to ensure that your system complies with tax measures. Tax Benefits of Fund Shares Government Authorizations PayrollProcessing Services Providers Reference Documents Example of Payroll Calculations with Payroll Deduction Example of Payroll Calculations with Payroll Deduction and Employer Contribution

21. Reference Documents Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Tax Breaks Guide for Employers – Source deductions and contributions TP-1015.G, Revenu Québec. http://www.revenu.gouv.qc.ca/documents/eng/formulaires/tp/tp-1015.g-v(2004-01).pdf http://www.revenu.gouv.qc.ca/eng/services/sgp_winras/index.asp Payroll Deductions formulas for Computer Programs, T-4127, Revenu Canada. http://www.ccra-adrc.gc.ca/E/pub/tg/t4127-jan/t4127-jan04e.pdf http://www.ccra-adrc.gc.ca/tax/business/tod/menu-e.html Tax Benefits of Fund Shares Government Authorizations PayrollProcessing Services Providers Reference Documents Example of Payroll Calculations with Payroll Deduction Example of Payroll Calculations with Payroll Deduction and Employer Contribution

22. Revenu Québec Revenu Canada Example of Payroll Calculations with Payroll Deduction Salary $500.00 $500.00 Gross income $500.00 $500.00 Less the deduction- Solidarity Fund QFL RRSP (employee) ($10.00) ($10.00) Taxable income $490.00 $490.00 Income tax payable $xxx,xx $xxx,xx Less the income tax credits - QPP $xxx,xx $xxx,xx - Employment insurance $xxx,xx $xxx,xx - Personal $xxx,xx $xxx,xx Income tax payable $xxx,xx $xxx,xx Less the income tax credits for the Fund- 15% of the amount subscribed ($10) ($1.50)- 15% of the amount subscribed ($10) ($1.50) • Relevé 10: An income statement issued by the Fund twice a year that attests to the sum of contributions paid to the employee’s account. This statement is sent by the Fund to the personal address of the employee. To be deducted before determining the taxes to be paid Must be calculated based on the gross income The 15% of tax credit for each government tax bracket reduces taxpayable

23. Revenu Québec Revenu Canada Salary $500.00 $500.00 Add the employer’s financial contribution to the employee Fund RRSP (if applicable) $10.00 $10.00 Gross income $510.00 $510.00 Less the deduction- Solidarity Fund QFL RRSP (employee) ($10.00) ($10.00)- Solidarity Fund QFL RRSP (employer)(if applicable) ($10.00) ($10.00) Taxable income $490.00 $490.00 Income tax payable $xxx,xx $xxx,xx Less the income tax credits - QPP $xxx,xx $xxx,xx - Employment insurance $xxx,xx $xxx,xx - Personal $xxx,xx $xxx,xx Income tax payable $xxx,xx $xxx,xx Less the income tax credits for the Fund- 15% of the amount subscribed ($20) ($3.00)- 15% of the amount subscribed ($20) ($3.00) Example of Payroll Calculations with Payroll Deduction and Employer Contribution • T4 slip andRelevé 1: Any financial contribution paid by the employer is taxable and must be added to the employee’s gross income, unlike that of the employee, which is not included. • Relevé 10: An income statement issued by the Fund twice a year that attests to the sum of contributions paid to the employee’s account. This statement is sent by the Fund to the personal address of the employee. To be deducted before determining the taxes to be paid Must be calculated based on the gross income The 15% of tax credit for each government tax bracket reduces tax payable

24. Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Solidarity Fund QFL Monthly Remittances Tax Breaks Forms and Noticeof Change Which Form Should I Use? Enrolment Form Change Request Form Notice of Change Access to our Secure Website To Contact Us Exit

25. Which Form Should I Use? Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Forms and Noticeof Change Two forms are available to you for the administration of payroll deduction: • the Enrolment Form • the Change Request Form Which Form Should I Use? Enrolment Form Change Request Form Notice of Change Access to our Secure Website To Contact Us

26. Enrolment Form This form authorizes the Fund to open an account for an RRSP, a non-RRSP or a Spousal RRSP. It must be signed by the person who wishes to become a shareholder. This form equally authorizes the Fund to ask the employer to begin the payroll deduction from one of his employee’s salary.

27. Change Request Form This form enables employees who are already Fund shareholders to start, modify or terminate their payroll deductions. This form also authorizes the Fund to ask the employer to begin, modify or stop the payroll deduction from one of his employee’s salary.

28. Notice of Change • This report combines all information included in our Enrolment and Change Request Forms. • Depending on your payroll run date, you can choose to receive by mail, by fax or via our Secure Website, a Notice of Change that will allow you to update your employees’ payroll.

29. Access to Our Secure Website Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Forms and Noticeof Change • We can forward your Notices of Change via our Secure Website where you may consult them at your convenience. • We will advise you in due time of the availability of such notices. • If you are interested, please signup by email at remisedas@fondsftq.com or by fax at: (514) 383-2503. Which Form Should I Use? Enrolment Form Change Request Form Notice of Change Access to our Secure Website To Contact Us

30. To Contact Us Employer’s Interactive Administrative Guide (IAG) Regarding Payroll Deduction Forms and Noticeof Change For more information concerning our Secure Website, our means of transmission of Remittance Notices and Remittance Lists, and the mailing of your monthly remittances to the Fund, do not hesitate to contact us by email at: remisedas@fondsftq.com or by fax at: (514) 383-2503and one of our advisors will get back to you promptly. At all times, it is possible to contact the person in charge of your file by dialing the telephone number indicated on your Remittance Notice. Which Form Should I Use? Enrolment Form Change Request Form Notice of Change Access to our Secure Website To Contact Us