Employee Who Reports for Work at One of Your Establishments Located in Québec and at One of Your Establishments Located Outside Québec

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If an employee reports for work at one of your establishments located in Québec and at one of your establishments located outside Québec, you must apply the rules set out below.

Salary or wages related to a regular pay period

An employee's salary or wages related to a regular pay period are subject to the following contributions and premiums unless, during this period, the employee reports primarily to one of your establishments located outside Québec:

Note
We consider that the same rule applies to source deductions of income tax and to employee and employer Québec Pension Plan (QPP) contributions.

Similarly, you must include the salary or wages in your total payroll used to calculate your health services fund contribution rate, your participation in workforce skills development and, if applicable, your contribution to the Workforce Skills Development and Recognition Fund (WSDRF).

Salary or wages not related to a regular pay period

Gratuities, retroactive payments, vacation pay and any other amounts paid to an employee that are not related to a regular pay period are subject to the following contributions and premiums, only if the employee ordinarily reports to one of your establishments located in Québec:

  • employee and employer QPIP premiums (see the information regarding the employer QPIP premium below);
  • the employer contribution to the health services fund;
  • the contribution related to labour standards.
Note
We consider that the same rule applies to source deductions of income tax and to employee and employer Québec Pension Plan (QPP) contributions.

Similarly, you must include these amounts in your total payroll used to calculate your health services fund contribution rate, your participation in workforce skills development and, if applicable, your contribution to the WSDRF.

Amount you pay to a custodian or to a trustee

If you pay an amount to a custodian or to a trustee on behalf of an employee who ordinarily reports for work at one of your establishments located in Québec but also reports for work at one of your establishments located outside Québec, this amount is subject to:

  • the employer contribution to the health services fund;
  • the contribution related to labour standards.
Note
We consider that the same rule applies to employee and employer Québec Pension Plan (QPP) contributions.

Similarly, you must include the amount in your total payroll used to calculate your health services fund contribution rate, your participation in workforce skills development and, if applicable, your contribution to the WSDRF.

Employer QPIP premium

If an employee reports for work at one of your establishments located in Québec and at one of your establishments located outside Québec, or if the employee is not required to report for work at any of your establishments (located in Québec or elsewhere), but receives pay from both one of your establishments located in Québec and one of your establishments located outside Québec, you may take into account the parental portion of the employer premium you paid (under the Employment Insurance plan or a plan like the QPIP) with respect to the employee's salary or wages paid by one of your establishments located outside Québec.

Your employer premium under a plan in force outside Québec and your employer QPIP premium should not total more than the employer QPIP premium you would have paid had one of your establishments located in Québec paid all of the employee's salary or wages.

Example

Tom earns an eligible salary of $70,000 in Ontario and $50,000 in Québec.

  1. Calculate the parental portion of the employer's Employment Insurance (EI) premium by multiplying the lesser of the following amounts by 0.38% (see note 1):
    • the eligible salary earned in Ontario ($70,000);
    • the maximum yearly insurable earnings under the Employment Insurance plan ($54,200).

    The result of this calculation is $205.96 ($54,200 × 0.38%).

    Multiply the result obtained above by 1.4 (see note 2). $205.96 × 1.4 = $288.34.

  2. Calculate the reduction of the maximum insurable earnings under the QPIP to take into account the parental portion of the employer's Employment Insurance premium. Divide the parental portion of the employer's Employment Insurance premium by the employer's premium rate.

    The result of this calculation is $41,667.63 ($288.34 ÷ 0.692%, which is the employer's premium rate).

  3. Calculate the employee's maximum insurable earnings under the QPIP: $78,500 − $41,667.63 = $36,832.37.
  4. To calculate the employer's QPIP premium, multiply the lesser of the following amounts by 0.692%:
    • the result obtained in (c) ($36,832.37);
    • eligible salary or wages under the QPIP earned in Québec ($50,000) [see note 3].

    In this case, the employer's QPIP premium is $254.88 ($36,832.37 × 0.692%).

Employer's maximum QPIP premium

In this example, the employer's maximum QPIP premium is $543.22 ($78,500 × 0.692%). Consequently, the results obtained in (a) and (d) cannot total more than $543.22.

Notes
  1. This rate generally corresponds to the difference between the EI premium rate paid by the employee outside Québec (1.58%) and the EI premium rate paid by the employee in Québec (1.20%).
  2. The employer's EI premium generally corresponds to 1.4 times the amount of the employee's EI premium.
  3. You have to enter $50,000 in box I of the employee's RL-1 slip.

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