Employee Transferred From an Establishment Subject to the Canada Pension Plan to an Establishment Subject to the Québec Pension Plan

If, during the year, an employee is transferred from an establishment subject to the Canada Pension Plan (CPP) to an establishment subject to the Québec Pension Plan (QPP), you must take into account:

the contribution rate applicable to the establishment where the employee reports for work; or
the contribution rate applicable to the establishment from which the employee is paid, if the employee is not required to report for work at any of your establishments.

You must remit the amount withheld to the appropriate plan.

If an employee is transferred during a pay period, the employee is considered to have worked during the entire pay period at the establishment to which they were transferred, and you must remit to the new plan the full amount withheld from the employee's salary or wages for the pay period.

Where an employee is transferred from an establishment subject to the CPP to an establishment subject to the QPP, you must multiply the total CPP contributions withheld since the beginning of the year by the ratio of the QPP contribution rate for the year to the CPP contribution rate for the year.

The QPP contribution to withhold for a pay period must not exceed the maximum contributory earnings for the year, multiplied by the QPP contribution rate minus QPP and CPP contributions withheld since the beginning of the year.

End of note

Example of how to calculate the contribution based on the employee's situation during the year

An employer with one establishment in Québec and another in Ontario pays employees every Friday. The employer transfers one employee from one establishment to the other twice during the year. The employee earns $1,500 per week. The basic exemption is $67.30 per week.

The tables below show how an employee's QPP contributions accumulate over the course of a year based on the employee's situation.

First 20 weeks of the year: the employee works at the establishment in Québec
Calculation based on the employee's situation	Pensionable salary or wages under the CPP	Pensionable salary or wages under the QPP	CPP contribution	QPP contribution	Accumulated contributions
Pensionable salary or wages under the QPP for 20 weeks: $1,500 × 20 weeks = $30,000	N/ANot applicable	$30,000	N/ANot applicable	N/ANot applicable	N/ANot applicable
QPP contributions for 20 weeks: ($1,500 − $67.30) × 6.40% × 20 weeks = $1,833.80	N/ANot applicable	N/ANot applicable	N/ANot applicable	$1,833.80	$1,833.80

From the beginning of the 21st week until the middle of the 30th week: the employee works at the establishment in Ontario
Calculation based on the employee's situation	Pensionable salary or wages under the CPP	Pensionable salary or wages under the QPP	CPP contribution	QPP contribution	Accumulated contributions
Pensionable salary or wages under the CPP for 9 weeks: $1,500 × 9 weeks = $13,500	$13,500	N/ANot applicable	N/ANot applicable	N/ANot applicable	N/ANot applicable
CPP contributions for 9 weeks: ($1,500 − $67.30) × 5.95% × 9 weeks = $767.25	N/ANot applicable	N/ANot applicable	$767.25	N/ANot applicable	N/ANot applicable
CPP contributions to add to the accumulated contributions: $767.25 × (6.40 ÷ 5.95)^{1Go to note 1 below the table.} = $825.28	N/ANot applicable	N/ANot applicable	N/ANot applicable	N/ANot applicable	+ $825.28
Note 1 This is the ratio between the QPP contribution rate (6.40%) for the year and the CPP contribution rate (5.95%) for the year that must be applied to the total CPP contributions withheld since the beginning of the year.

From the middle of the 30th week to the end of the year: the employee works at the establishment in Québec
Calculation based on the employee's situation	Pensionable salary or wages under the CPP	Pensionable salary or wages under the QPP	CPP contribution	QPP contribution	Accumulated contributions
Pensionable salary or wages under the QPP for 15 weeks: $1,500 × 15 weeks = $22,500	N/ANot applicable	+ $22,500	N/ANot applicable	N/ANot applicable	N/ANot applicable
QPP contributions for 15 weeks: ($1,500 − $67.30) × 6.40% × 15 weeks = $1,375.35	N/ANot applicable	N/ANot applicable	N/ANot applicable	+ $1,375.35	+ $1,375.35
Subtotal	= $13,500	= $52,500	= $767.25	= $3,209.15	= $4,034.43

QPP contribution for the 45th week
Calculation based on the employee's situation	Pensionable salary or wages under the CPP	Pensionable salary or wages under the QPP	CPP contribution	QPP contribution	Accumulated contributions
Pensionable salary or wages under the QPP (maximum pensionable salary or wages under the QPP minus the total of the pensionable salary or wages under the QPP and the CPP since the beginning of the year): $66,600 − $52,500 − $13,500 = $600	N/ANot applicable	+ $600	N/ANot applicable	N/ANot applicable	N/ANot applicable
QPP contribution (maximum QPP contribution for the year minus the contributions accumulated since the beginning of the year): $4,038.40 − $4,034.43 = $3.97	N/ANot applicable	N/ANot applicable	N/ANot applicable	+ $3.97	+ $3.97
QPP contributions for the remaining 7 weeks	N/ANot applicable	N/ANot applicable	N/ANot applicable	+ $0	+ $0
Total^{1Go to note 1 below the table.}	= $13,500	= $53,100	= $767.25	= $3,213.12	= $4,038.40
Note 1 On the employee's RL-1 slip, the employer must enter $3,213.12 in box B and $53,100 in box G. The employer must also enter G-2 in a blank box, followed by $13,500, and B-1 in another blank box, followed by $767.25. The total amount of pensionable salary or wages under both plans must not exceed the maximum pensionable salary or wages under the QPP for the year ($66,600).

Employee Transferred From an Establishment Subject to the Canada Pension Plan to an Establishment Subject to the Québec Pension Plan

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