Employee Who Is Paid in Part From One of Your Establishments Located Outside Québec
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 can take into account the employer premium you paid (under the Employment Insurance plan or a plan like the Québec parental insurance plan (QPIP)) on 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 of how to calculate the employer QPIP premium
The following is an example of how the employer QPIP premium is calculated for an employee who earns an eligible salary of $70,000 in Ontario and $60,000 in Québec.
Display the text version of the sample calculation
First, determine the employer's Employment Insurance (EI) premium by doing the following two calculations:
- Multiply by 0.33% (employee's EI premium rate outside Québec [1.64%] minus employee's EI premium rate in Québec [1.31%]) the lesser of the following amounts: the eligible salary earned in Ontario ($70,000) or the maximum insurable earnings under the EI plan ($65,700). Since the lesser amount here is $65,700, do the following calculation: $65,700 × 0.33% = $216.81.
- Multiply the above result by 1.4 (employer's EI premium rate): $216.81 × 1.4 = $303.53.
Next, 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 EI premium by the employer's premium rate as follows: $303.53 ÷ 0.692% = $43,862.72.
Next, determine the employee's maximum insurable earnings under the QPIP: $98,000 − $43,862.72 = $54,137.28.
To calculate the employer's QPIP premium, multiply the lesser of the following amounts by 0.692%:
- the result from the previous step ($54,137.28)
- eligible salary or wages under the QPIP earned in Québec ($60,000)
In this case, the employer's QPIP premium is $374.63 ($54,137.28 × 0.692%).
In this example, the employer's maximum QPIP premium is $678.16 ($98,000 × 0.692%). Consequently, the total of the employer EI and QPIP premiums cannot be more than $678.16.