No, an employer doesn't have to deduct income tax at source on the contributions they make to your employee's RRSPs they you have reasonable grounds to believe that the employee can deduct the contribution for the year. For more details, see Chapter 5 of Guide T4001, Employers' Guide – Payroll Deductions and Remittances.
You would still report the taxable amount in box 14 and box 40, as it’s still a taxable benefit.
If you have further questions about payroll taxes, we would recommend visiting the QuickBooks community or the Intuit Profile support site. Unlike TurboTax, both QuickBooks and Profile can be used to create T4 slips, so you’ll likely find more people knowledgeable about the subject there.
