Calculating Québec Pension Plan (QPP) Contributions
You can use any of the following to calculate employer and employee QPP contributions:
- The formula for calculating an employee's QPP contribution given in guide TP-1015.F-V can only be used to calculate the contribution of an employee whose employment is continuous and whose pay periods are regular.
- There is no formula to calculate your employer contribution. You simply pay a contribution that is equal to the total amount of the contributions you withheld from your employees' pensionable salaries or wages.
You can also calculate QPP contributions yourself. See the Source Deduction Tables for QPP Contributions (TP-1015.TR-V).
You must withhold an employee's QPP contribution on the gross pensionable salary or wages you pay the employee for a pay period (calculated before other source deductions, such as union dues and registered pension plan (RPP) contributions, are taken into account) minus the pay period exemption. If an employee begins or stops working during a normal pay period, withhold the employee's QPP contribution from the employee's gross pensionable salary or wages as if the employee had worked the entire period.
The employer QPP contribution is equal to the contribution you must withhold from your employees' pensionable salary or wages.
The total of the amounts you withhold during the year for an employee must not exceed the maximum employee contribution for the year. Once the maximum employee contribution is reached, you must stop withholding QPP contributions from the employee's remuneration. You must also stop paying the employer contribution on this remuneration because the maximum employer contribution for the year is also reached once the maximum employee contribution has been reached.
In certain special situations, the maximum contribution for the year must be reduced.