Québec Pension Plan Contributions
If you have an employee who is 18 or older, both you and the employee must contribute to the Québec Pension Plan (QPP).
This rule applies even if the employee:
- receives a retirement pension under the QPP or the Canada Pension Plan (CPP); or
- is 70 or older.
The QPP provides pension income to employees who have retired, who are taking phased retirement or who have become disabled. If an employee dies, the QPP provides benefits to the employee's spouse or dependants.
QPP contributions are shared equally by the employer and the employee.
You must withhold the employee's QPP contribution from his or her pensionable salary or wages and remit it to us at the same time you remit your QPP contribution. We remit the employee and employer QPP contributions to Retraite Québec which then enters the amount of the contributions and the employee's pensionable salary or wages in the Record of Contributors.
You must remit QPP contributions to us periodically, according to your remittance frequency, using the payment option that is most convenient for you.
The expression “pensionable salary or wages under the QPP” means the salary or wages described in the Act respecting the Québec Pension Plan in the fourth paragraph of section 50 (for employee and employer contributions) and in section 45 (for optional contributions).
Further to the assent of Bill 149 on February 22, 2018, an enhancement to the QPP will be implemented as of January 2019. The enhancement, similar to that made to the CPP, consists of the introduction of an additional plan in two stages. The first stage will be implemented in 2019, and the second in 2024. With this enhancement, the QPP will consist of the current base plan and an additional plan.
Starting in 2019, you will be required to withhold the base contribution and a first additional contribution on an employee's pensionable salary or wages that do not exceed the employee's maximum pensionable earnings under the QPP for the year. From 2019 to 2023, the rate of the first additional contribution will progressively increase until it reaches 2% (shared equally by the employee and the employer).
As of 2024, you will be required to withhold the base contribution, the first additional contribution and a second additional contribution on an employee's pensionable salary or wages exceeding the employee's maximum pensionable earnings under the QPP, up to the additional maximum pensionable earnings for the year. The second additional contribution will be withheld at a rate of 8% (shared equally by the employee and the employer). The amount of the additional maximum pensionable earnings will be equal to 107% of the maximum pensionable earnings for 2024 and 114% of the maximum pensionable earnings for 2025 and subsequent years.
Every employee who contributes to the QPP must have a social insurance number (SIN).