A compensation plan administered by Éco Entreprises Québec (ÉEQ) came into effect on March 1, 2005. Under the plan, businesses and organizations that generate containers, packaging or printed matter are required to make contributions to help municipalities to cover the cost of selective collection.
Does it apply to your business?
Any business or organization that generates containers, packaging or printed matter on behalf of the business is subject to this plan. Targeted materials include circulars, leaflets, printer paper, till receipts, etc.
How is your contribution calculated?
A schedule of contributions is established for each reference year, which helps companies to calculate their contribution. For each of the designated materials, it is a matter of multiplying the amount of material in kilograms by the rate that applies to it. For example, based on the 2013 schedule of contributions, a contribution of $0.22264/kg is required for paper for general use.
However, low-volume producers have an alternative available to them, namely, the option of paying a flat fee. For instance, under the 2013 schedule of contributions, a business that generates between 1 and 2.5 metric tons of material may choose to pay a flat fee of $335.
Is your business exempt from making payments?
Your business is exempt from payment if it:
Has marketed one or more materials with a total weight of ≤ 1 metric ton during the reference year or
Has revenues, receipts or sales of ≤ $1 M for the reference year or
Has only one point of sale and is not supplied or operated as part of a franchise, a chain or under a banner.
How to proceed?
To fulfill their obligations, businesses must first register through the ÉEQ website. Then, every year, they must file a report online and pay the appropriate contribution before the deadline. If your business is exempt from payment, you must still register it online and complete a report to confirm eligibility.
| |
2013 contribution |
2014 contribution |
| Reference year for calculation |
January 1, 2012 to December 31, 2012 |
January 1, 2013 to December 31, 2013 |
| Reporting deadline |
July 8, 2014 |
90 days following coming into effect of schedule of contributions (not yet in effect) |
| Remittance deadline |
80%: July 26, 2014*
20%: September 26, 2014
|
40%: September 26, 2014 *
60%: January 26, 2015
|
| Penalty for non-payment |
- 6% interest
- 10% administrative fee
|
* For businesses that opt to pay the flat fee, 100% of the contribution is payable by the first deadline.