Remuneration Subject to Québec Parental Insurance Plan (QPIP) Premiums
As a rule, remuneration subject to Employment Insurance premiums (eligible salary or wages) is also subject to Québec parental insurance plan (QPIP) premiums.
Employment that is not insurable under the Employment Insurance Act is not necessarily excluded employment under the Act respecting parental insurance.
Consequently, you may be required to withhold and pay QPIP premiums respecting remuneration that is not subject to Employment Insurance premiums.
If this is the case, the remuneration subject to QPIP premiums is equal to the remuneration from which you would have withheld Employment Insurance premiums had the employment been insurable under the Employment Insurance Act. For example, you must withhold and pay QPIP premiums respecting salary or wages paid to a shareholder (or a shareholder's spouse) in his or her capacity as an employee, regardless of the number of shares held by that person.
As a rule, the following types of remuneration are subject to QPIP premiums:
- employment income;
- a taxable benefit in cash;
- a taxable benefit for board and lodging granted to the employee for a pay period in which the employee receives cash remuneration;
- a taxable benefit related to the contributions paid to the employee's individual registered retirement savings plan (RRSP).
The following types of remuneration are also subject to QPIP premiums:
- an indemnity in lieu of notice, except in the case of a retiring allowance under the Employment Insurance plan;
- the portion of salary earned in the year that will be paid in a future year in the context of a self-funded leave of absence or a salary deferral arrangement;
- a non-taxable allowance paid to an elected member of a municipal council, to a member of the council or executive committee of a metropolitan community, RCM or similar body created under a Québec statute, to a member of a municipal utilities commission or corporation or a similar body responsible for administering such services, or to a member of a public or separate school board, for expenses related to the individual's duties;
- an allowance for travel expenses paid to an employee in the construction sector that constitutes insurable remuneration under the Employment Insurance plan;
- a non-taxable allowance for travel expenses paid to a member of the council of a regional county municipality or of the Kativik Regional Government;
- a non-taxable allowance for travel expenses paid to a member of a board of directors or of different committees;
- financial compensation of up to $1,150 paid to an emergency services volunteer, unless the compensation is paid to a volunteer who participates in a rescue operation, is not regularly employed by the employer or is employed by the employer for fewer than seven days in the year;
- a non-taxable benefit related to a public transit pass or a paratransit pass with regard to which you reimburse an amount to your employee (a public transit pass or a paratransit pass that you provide to your employee is not subject to QPIP premiums);
- a non-taxable allowance paid to a juror for meals, accommodation and transportation, as well as an allowance paid for the care of children or other dependants and for psychological treatment;
- the portion of a non-taxable allowance for moving and relocation expenses that exceeds $650.
You must take into account the remuneration actually paid to the employee because, as a rule, a benefit in kind does not constitute eligible salary or wages under the QPIP.
To see which source deductions and employer contributions to make on amounts you pay to employees and beneficiaries, refer to the table on the Remuneration Subject to Source Deductions and Employer Contributions page.