Québec Pension Plan Contributions
If you have an employee who is 18 or older, both you and the employee must contribute to the Québec Pension Plan (QPP).
This rule applies even if the employee:
- receives a retirement pension under the QPP or the Canada Pension Plan (CPP); or
- is 70 or older.
The QPP provides pension income to employees who have retired or who have become disabled. If an employee dies, the QPP provides benefits to the employee's spouse or dependants.
QPP contributions are shared equally by the employer and the employee.
You must withhold the employee's QPP contribution from his or her pensionable salary or wages and remit it to us at the same time you remit your QPP contribution. We remit the employee and employer QPP contributions to Retraite Québec which then enters the amount of the contributions and the employee's pensionable salary or wages in the Record of Contributors.
You must remit QPP contributions to us periodically, according to your remittance frequency, using the payment option that is most convenient for you.
The expression “pensionable salary or wages under the QPP” means the salary or wages described in the Act respecting the Québec Pension Plan in the fourth paragraph of section 50 (for employee and employer contributions) and in section 45 (for optional contributions).
On January 1, 2019, the QPP was enhanced and now consists of the base plan and an additional plan.
Consequently, the employee's QPP contribution is now comprised of the base contribution and an additional contribution.
As the additional contribution is being implemented in two stages, the first in 2019 and the second in 2024, withhold an employee's QPP contribution as follows:
- For years prior to 2024, you must withhold the employee's QPP contribution (the base contribution and a first additional contribution) on the portion of an employee's pensionable salary or wages that exceeds $3,500 for the year, up to the maximum pensionable earnings under the QPP for the year. The rate of the first additional contribution will progressively increase until it reaches 2% in 2023 (shared equally by the employee and the employer).
- As of 2024, you will be required to withhold, in addition to the amount described in the previous point, a second additional contribution on the portion of an employee's pensionable salary or wages exceeding the employee's maximum pensionable earnings under the QPP for the year, up to the additional maximum pensionable earnings under the QPP for the year. The second additional contribution will be withheld at a rate of 8% (shared equally by the employee and the employer). The amount of the additional maximum pensionable earnings will be equal to 107% of the maximum pensionable earnings for 2024 and 114% of the maximum pensionable earnings for 2025 and subsequent years.
You have to continue withholding the employee's contribution and remit it with your employer contribution in the usual manner. You also have to continue to report the total of the QPP contributions withheld during the year in box B of the employee's RL-1 slip.
Every employee who contributes to the QPP must have a social insurance number (SIN).