The pay period exemption for an employee whose employment is non-continuous is:
- $1.75 per hour, if the employee is paid by the hour
($3,500 ÷ 2,000 hours = $1.75); or
- $14.58 per day, if the employee is paid by the day
($3,500 ÷ 240 days = $14.58).
When calculating the Québec Pension Plan (QPP) contribution, you must subtract the exemption from the pensionable salary or wages paid to your employees.
You cannot use the formula in the Formulas to Calculate Source Deductions and Contributions (TP-1015.F-V) to calculate the QPP contribution of an employee whose employment is non-continuous. You must do the calculation yourself or use Table B in the Source Deduction Tables for QPP Contributions (TP-1015.TR-V).
An employee worked for two days (non-continuous employment) at the rate of $90 per day, and was paid $180 at the end of the two-day period. The exemption is $14.58 per day, and the QPP contribution is $9.28 (6.15% × $150.84 [$180 – ($14.58 × 2)]), or if Table B is used, $4.64 per day × 2.