Employee Who Is Paid in Part From One of Your Establishments Located Outside Québec
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 can take into account the employer premium you paid (under the Employment Insurance plan or a plan like the Québec parental insurance plan (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.
Tom earns an eligible salary of $70,000 in Ontario and $50,000 in Québec.
Calculate the employer's Employment Insurance (EI) premium by multiplying the lesser of the following amounts by 0.40% (see note 1):
- the eligible salary earned in Ontario ($70,000);
- the maximum yearly insurable earnings under the Employment Insurance plan ($56,300).
The result of this calculation is $225.20 ($56,300 × 0.40%).
Multiply the result obtained above by 1.4 (see note 2). $225.20 × 1.4 = $315.28.
Calculate the reduction of the maximum insurable earnings under the QPIP to take into account the employer's Employment Insurance premium. Divide the employer's Employment Insurance premium by the employer's premium rate.
The result of this calculation is $45,560.69 ($315.28 ÷ 0.692%, which is the employer's premium rate).
- Calculate the employee's maximum insurable earnings under the QPIP: $83,500 − $45,560.69 = $37,939.31.
To calculate the employer's QPIP premium, multiply the lesser of the following amounts by 0.692%:
- the result obtained in (c) ($37,939.31);
- eligible salary or wages under the QPIP earned in Québec ($50,000) [see note 3].
In this case, the employer's QPIP premium is $262.54 ($37,939.31 × 0.692%).
Employer's maximum QPIP premium for the year
In this example, the employer's maximum QPIP premium is $577.82 ($83,500 × 0.692%). Consequently, the results obtained in (a) and (d) cannot total more than $577.82.
- 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 (1.18%).
- The employer's EI premium generally corresponds to 1.4 times the amount of the employee's EI premium.
- You have to enter $50,000 in box I of the employee's RL-1 slip.