Employee with Work Income for the Year of Less than $2,000

Québec parental insurance plan (QPIP) premiums

An employee is not required to pay QPIP premiums for the year if his or her work income (that is, eligible salary or wages and business income) for the year is less than $2,000. You must, however, start withholding and paying QPIP premiums as soon as you pay the employee one dollar of eligible salary or wages.

In other words, the $2,000 threshold is not taken into account in the employee premiums you withhold, nor in your employer premiums.

Refund of amounts withheld

If, however, the employee's work income for the year is less than $2,000 and he or she is resident in Québec at the end of the year, the employee may receive a refund of the amounts withheld when the employee files his or her provincial income tax return for the year.

Likewise, if the employee is not resident in Québec at the end of the year and his or her work income is also subject to Employment Insurance, the employee may receive a refund of the amounts withheld when the employee files his or her federal income tax return for the year.

Notes
  • The employee can also submit a written request, in the four years following the end of the year in question, for the refund of the amounts withheld.
  • The employer premium is not refunded because the $2,000 threshold does not apply to the employer premium.
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