Employee Who Reports for Work Only at One of Your Establishments Located Outside Canada or Who is Paid from One of Your Establishments Located Outside Canada

If an employee reports for work only at one of your establishments located outside Canada or is paid from one of your establishments located outside Canada, special rules may apply with respect to:

QPP contributions

Remuneration paid for work performed outside Canada is not subject to employee or employer QPP contributions, except in the following cases:

  • The remuneration is paid from one of your establishments located in Québec, and you have entered into an agreement with Retraite Québec respecting work performed outside Canada by employees who were resident in Québec at the time of their posting to a foreign country.
  • The work is performed in a country that has signed a social security agreement with Québec by employees who were resident in Québec at the time of their posting to a foreign country (see Employee Temporarily Posted to a Country That Has a Social Security Agreement with Québec).
Note

Contact us if the remuneration is paid from one of your establishments located in Québec, but you have not entered into an agreement with Retraite Québec respecting work performed outside Canada by employees who were resident in Québec at the time of their posting to a foreign country.

QPIP premiums

You may be required to withhold and pay QPIP premiums on an employee's eligible salary or wages if the employee was resident in Québec at the end of the year and, for the pay period concerned, the following conditions are met:

  • You have an establishment located in Québec.
  • The employee reports for work only to one of your establishments located outside Canada or the employee is not required to report for work at any of your establishments (located in Québec or elsewhere) and is paid by one of your establishments located outside Canada.
  • The employee is not subject to a premium under a prescribed plan.
  • The employee's remuneration is not subject to Employment Insurance premiums.

Employer contribution to the health services fund

If you have posted an employee to a country that has a social security agreement with Québec providing for reciprocal coverage of health insurance plans, you must pay the employer contribution to the health services fund on the salary or wages paid to the employee, even if the salary or wages are paid from your establishment located outside Canada or by a person other than you.

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