ARQ Source-Deduction Audit — Montreal CPA Firm Near You: QPP / QPIP / HSF Remit

An ARQ Source-Deduction Audit is one of the most critical payroll verifications conducted by Revenu Québec. It focuses on the accuracy, timeliness, and completeness of employer remittances for the Québec Pension Plan (QPP), Québec Parental Insurance Plan (QPIP), the Health Services Fund (HSF), and Québec income tax withholding. Whether you manage a team of two or two hundred, one missing remittance or late payment can trigger penalties that accumulate quickly. Mackisen CPA Montreal provides professional defense and preventive payroll-audit preparation to protect your company and its directors from reassessments and legal exposure.

Legal Foundation

Law: Tax Administration Act (LAF) arts. 40–44 — employer obligations and ARQ enforcement powers; Taxation Act (TA) ss. 968–969 — calculation of HSF, QPP, and QPIP contributions; QPIP Act s. 49 — premium remittance deadlines.
Jurisprudence: Morin v. CNESST (2016 QCCS) — confirmed that employers are personally liable for remitting statutory payroll deductions and benefits within prescribed time limits.

Why Source-Deduction Audits Matter

Payroll deductions are not company funds — they are fiduciary trust amounts collected on behalf of employees and the government. ARQ considers these deductions sacred; any deviation is treated as a breach of trust. Missing or late QPP, QPIP, or HSF payments can result in compounded interest, penalties of up to 15%, and even director personal liability under section 24 of the Tax Administration Act.

Learning insight: A late payroll remittance is not a bookkeeping error — it’s a trust violation in the eyes of the law.

What Mackisen CPA’s Source-Deduction Audit Defense Includes

• Comprehensive reconciliation of QPP, QPIP, HSF, and income tax remittances to RL-1 summaries and T4 filings.

• Verification of payroll calculations, benefit deductions, and employer contribution rates.

• Cross-check between FPZ-500-V and CO-17 schedules for employer obligations.

• Identification and correction of underreported or over-remitted amounts.

• Preparation of director due-diligence defense documentation for potential liability assessments.

Learning insight: Compliance starts at the source — every deduction must trace from employee gross pay to government deposit without gaps.

Common Triggers for ARQ Source-Deduction Audits

• Differences between RL-1, FPZ-500-V, and payroll-system records.

• Late or missed remittances during cash-flow shortages.

• Incorrect HSF rate applied due to payroll bracket misclassification.

• Unfiled annual summaries or employee T4/RL-1 slips.

• Inconsistent employer QPP and QPIP contributions compared to industry averages.

Mackisen CPA Montreal identifies these warning signs and corrects them proactively — before the auditor requests your payroll register.

How Mackisen CPA Manages Source-Deduction Audits

1. Performs a line-by-line reconciliation of all payroll accounts and statutory deductions.

2. Verifies government payment confirmations for each pay period.

3. Calculates adjustments for HSF and employer QPIP contributions.

4. Negotiates penalty relief or installment plans when remittance delays are justified.

5. Builds a six-year compliance file for future ARQ or CNESST cross-verifications.

Learning insight: Payroll errors multiply when left unchecked — prevention through reconciliation is your best defense.

Benefits of Professional Payroll Audit Representation

• Prevents director assessments under LAF art. 24 for unpaid payroll trust amounts.

• Minimizes or eliminates late penalties and accrued interest.

• Ensures accurate classification of wages, bonuses, and benefits.

• Strengthens compliance records for CNESST and QPP/HSF verifications.

• Builds confidence with ARQ auditors through transparent CPA documentation.

Learning insight: Payroll accuracy is the foundation of tax compliance — Mackisen CPA keeps your foundation unshakable.

SEO Optimization and Learning Value

Primary Keywords: ARQ Source-Deduction Audit, Québec Payroll Tax Audit, Mackisen CPA Montreal, CPA Firm Near You, Revenu Québec QPP QPIP HSF Audit, Payroll Reconciliation Québec.
Secondary Keywords: Director liability payroll, late remittance penalty relief Québec, Mackisen payroll compliance, HSF rate verification, RL-1 summary reconciliation.

Learning insight: Every pay run is a government transaction — Mackisen CPA ensures each dollar is remitted, recorded, and reconciled.

Real Client Success

• A construction company reduced $42,000 in payroll penalties after Mackisen CPA proved remittance errors were due to system integration issues.

• A manufacturing employer avoided director assessment under LAF art. 24 by demonstrating reasonable diligence through CPA-managed payroll tracking.

• A tech startup received QPP overpayment credits after we discovered duplicate remittances in its automated system.

Why Mackisen CPA Montreal

Mackisen CPA Montreal is the trusted partner for payroll audit representation across Québec. With more than 35 years of combined CPA experience in tax law, compliance, and payroll audit defense, we ensure every remittance is supported by verifiable data and legal proof. Our team collaborates directly with Revenu Québec and CNESST officers to simplify communication and reduce risk for business owners.

Learning insight: Payroll compliance isn’t just numbers — it’s trust, transparency, and timing. Mackisen CPA makes sure all three are always on your side.