Total Québec Pension Plan (QPP) Contributions Paid
Refer to the Special Situations – Québec Pension Plan (QPP) Contributions page to check whether the total amount of QPP contributions you withheld during the year for an employee who held continuous employment is correct.
You may have made an overpayment of QPP contributions for a year. This may happen if, for example, an employee died during the year, received a disability pension under the QPP after you deducted the maximum contribution for the year, or was under 18 when you paid a contribution.
The overpayment will be refunded to you if you submit a written request within four years after the end of the year in which the excess amount was paid.
If the overpayment results from a decision under section 65 of the Act respecting the Québec Pension Plan or section 44 of the Act respecting parental insurance concerning the determination of an individual's employment status, or from a decision upon objection or appeal, you will receive a refund without having to request one.
An employee whose contributions exceed the maximum contribution for the year and who is resident in Québec at the end of the year can be refunded the excess contributions when the employee files his or her provincial income tax return for the year. If the employee is not resident in Québec at the end of the year, he or she can be refunded the excess contributions when the employee files his or her federal income tax return for the year. Note that the employee can also submit a written request for the refund of an overpayment of contributions in the four years following the end of the year.
Insufficient QPP contributions
If the amount that you withheld as the employee's QPP contribution was insufficient, you are required to remit the amount you did not withhold together with your employer contribution. You can recover the employee contribution that you paid out of your own funds later by deducting the amount from any pensionable salary or wages you pay the employee in the 12 months following the date on which the contribution should have been withheld.
You can recover the equivalent of one QPP contribution from each payment of pensionable salary or wages. If the employee does not reimburse you, the amount becomes a taxable benefit that you must report in boxes A and L of the employee's RL-1 slip (see courtesy translation RL-1-T).
If you should have withheld an amount in a previous year and you recover that amount in the current year, do not enter the amount on the employee's RL-1 slip for the current year. Amend the employee's RL-1 slip for the previous year instead. For more information on how to amend an RL-1 slip, see Amending RL Slips.
Time limit for making an assessment
We may adjust the amount of the QPP contribution you are required to pay and make a reassessment or an additional assessment. Once you are notified of the contribution assessed, you must pay it immediately.
If you are not satisfied with the decision, refer to Recourse for Your Tax-Related Problems (IN-106-V) or Your Options for Recourse on our website.
We have four years after the date on which an amount becomes payable to make an assessment. This deadline does not apply in the following cases:
- You have not filed a return.
- You have made a false statement or committed fraud in supplying the required information.
- You have filed an application for a waiver on the prescribed form.