Employee Who Turns 18

Québec Pension Plan (QPP) contributions

Start withholding QPP contributions in the first month after the month in which the employee turns 18.

Example of how to calculate the maximum QPP contribution for an employee who turns 18 in the year

Lisa turned 18 on August 15, 2023. She receives a salary of $6,000 per month ($72,000 per year), which exceeds the maximum pensionable salary or wages ($66,600).

No contribution is to be withheld for Lisa from January to August, the month in which she turned 18.

Her contributions are to be withheld only for the period from September to December (a period of 4 months). The maximum contribution for this period is calculated as follows:

  • The basic monthly exemption is: $3,500 ÷ 12 = $291.66.
  • The monthly contributory earnings are: $6,000 − $291.66 = $5,708.34.
  • The contribution for the pay period: $5,708.34 × 6.40% = $365.33.

The maximum annual contribution for 2023 is $1,346.13 ($4,038.40 × 4/12).

The maximum pensionable salary for 2023 is $22,200 ($66,600 × 4/12).

Source deductions of income tax, QPIP premiums, other source deductions and employer contributions

An employee's age does not affect source deductions of income tax, Québec parental insurance plan (QPIP) premiums, the contribution to the health services fund, the contribution related to labour standards and, if applicable, the contribution to the Workforce Skills Development and Recognition Fund (WSDRF).

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