Employee Who Reports for Work at One of Your Establishments Located in Québec and at One of Your Establishments Located Outside Québec

If an employee reports for work at one of your establishments located in Québec and at one of your establishments located outside Québec, you must apply the rules set out below.

Salaries or wages related to a regular pay period

Salaries or wages related to a regular pay period are subject to the following contributions and premiums unless, during the period, the employee reports primarily to one of your establishments located outside Québec (see the note below):

Similarly, you must include the salaries and wages in your total payroll used to calculate your health services fund contribution rate, your participation in workforce skills development and, if applicable, your contribution to the Workforce Skills Development and Recognition Fund (WSDRF).

Salaries and wages not related to a regular pay period

Gratuities, retroactive payments, vacation pay and any other amounts paid to an employee that are not related to a regular pay period are subject to the following contributions and premiums, provided the employee to whom they are paid ordinarily reports to one of your establishments located in Québec (see the note below):

  • employee and employer QPIP premiums;
  • the employer contribution to the health services fund;
  • the contribution related to labour standards.

Similarly, you must include these amounts in your total payroll used to calculate your health services fund contribution rate, your participation in workforce skills development and, if applicable, your contribution to the WSDRF.

Amount you pay to a custodian or to a trustee

If you pay an amount to a custodian or to a trustee on behalf of an employee who ordinarily reports for work at one of your establishments located in Québec and at one of your establishments located outside Québec (see the note below), that amount is subject to:

  • the employer contribution to the health services fund;
  • the contribution related to labour standards.

Similarly, you must include the amount in your total payroll used to calculate your health services fund contribution rate, your participation in workforce skills development and, if applicable, your contribution to the WSDRF.

Note

We consider that the same rules apply to source deductions of income tax and to employee and employer contributions to the Québec Pension Plan (QPP).

Employer QPIP premium

If an employee reports for work at one of your establishments located in Québec and at one of your establishments located outside Québec, or if the employee is not required to report for work at any of your establishments (located in Québec or elsewhere), but receives pay from both one of your establishments located in Québec and one of your establishments located outside Québec, you may take into account the parental portion of the employer premium you paid (under the Employment Insurance plan or a plan like the QPIP) with respect to the employee's salary or wages paid by one of your establishments located outside Québec.

Your employer premium under a plan in force outside Québec and your employer QPIP premium should not total more than the employer QPIP premium you would have paid had one of your establishments located in Québec paid all of the employee's salary or wages.

Example of how to calculate the maximum employer QPIP premium for 2017 with respect to an employee who reports to work both in Québec and outside Québec

Tom earns an eligible salary of $70,000 in Ontario and $50,000 in Québec.

  1. Calculate the parental portion of the employer's Employment Insurance premium by multiplying the lesser of the following amounts by 0.36% (see note 1):
    • the eligible salary earned in Ontario ($70,000);
    • the maximum yearly insurable earnings for the purposes of the Employment Insurance plan ($51,300).

    The result of this calculation is $184.68 ($51,300 × 0.36%).

    Multiply the result obtained above by 1.4 (see note 2). $184.68 × 1.4 = $258.55.

  2. Calculate the reduction of the maximum insurable earnings for the purposes of the QPIP to take into account the parental portion of the employer's Employment Insurance premium. Divide the parental portion of the employer's Employment Insurance premium by the employer's premium rate.

    The result of this calculation is $33,709.26 ($258.55 ÷ 0.767%, where 0.767% is the employer's premium rate).

  3. Calculate the employee's maximum insurable earnings for the purposes of the QPIP: $72,500 − $33,709.26 = $38,790.74.
  4. To calculate the employer's QPIP premium, multiply the lesser of the following amounts by 0.767%:
    • the result obtained in (c) ($38,790.74);
    • eligible salary or wages under the QPIP earned in Québec ($50,000).

    In this case, the employer's QPIP premium is $297.52 ($38,790.74 × 0.767%).

Employer's maximum QPIP premium for 2017

The employer's maximum QPIP premium for 2017 is $556.08 ($72,500 × 0.767%). Consequently, the results obtained in (a) and (d) cannot total more than $556.08

Notes
  1. As a rule, the rate corresponds to the difference between the Employment Insurance premium rate paid by the employee outside Québec (1.63%) and the Employment Insurance premium rate paid by the employee in Québec (1.27%).
  2. As a rule, the employer's Employment Insurance premium is 1.4 times the amount of the employee's Employment Insurance premium.
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