Any amounts owed to an employee for the year that are paid after the employee's death are subject to the following, as they would have been before the employee's death:

• source deductions of income tax;
• Québec Pension Plan (QPP) contributions;
• the contribution to the health services fund; and
• the contribution related to labour standards.

These amounts are not subject to Québec parental insurance plan (QPIP) premiums.

You must include the total amount owed 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).

Such amounts could be amounts for accumulated vacation at the time of death or retroactive payments under a collective agreement signed before the employee's death.

If the payment of an amount was unforeseeable at the time of the employee's death, it will not be subject to source deductions and employer contributions. This applies, for example, to a lump sum paid under a collective agreement signed after the employee's death.

QPP contributions

Withhold employee QPP contributions up to and including the day the employee dies. To calculate the QPP contribution, take into account the number of months up to and including the month of the employee's death.