Maximum Québec Pension Plan Contribution for the Year Based on an Employee's Situation
You must reduce your employee's maximum contribution when the employee is in one of the situations set out below.
|Employee whose employment is continuous||Maximum contribution for 2019 (the amount in column A or B, whichever is less)|
|The employee is 18 or older throughout the year and does not receive a disability pension under the Québec Pension Plan (QPP) or the Canada Pension Plan (CPP).||$2,991.45||
5.55% × [pensionable salary or wages - (pay period exemption × number of pay periods for which you paid a pensionable salary or wages − amount by which the pay period exemption exceeds the pensionable salary or wages for a pay period1)]
|The employee turned 18.||$2,991.45 × (number of months after the month of the 18th birthday) ÷ 12 (see the first example below)|
|The employee began to receive a disability pension under the QPP or the CPP.||$2,991.45 × (number of months up to and including the month that includes the date (set by Retraite Québec) on which the employee became disabled) ÷ 12|
|The employee stopped receiving a disability pension under the QPP or the CPP.||$2,991.45 × (number of months after the month in which the employee stopped receiving the disability pension) ÷ 12|
|The employee died.||$2,991.45 × (number of months in the year up to and including the month of the employee's death) ÷ 12 (see the second example below)|
|The employee was 17 or younger throughout the year.||No QPP contributions|
- The pay period exemption must not exceed the pensionable salary or wages for the period. For example, if the pay period exemption is $67.30 and you paid a pensionable salary or wages of $60 for a pay period, multiply the pay period exemption ($67.30) by the number of pay periods for which you paid a pensionable salary or wages to the employee, and subtract $7.30 from the result.
Lisa turned 18 on August 15, 2019. She receives a salary of $5,000 per month ($60,000 per year), which exceeds the maximum pensionable salary or wages ($55,400). No contribution is to be withheld for Lisa from January to August, the month during 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 months= $291.66.
- The monthly contributory earnings are: $5,000 - $291.66 = $4,708.34.
- The contribution for the pay period: $4,708.34 × 5.55% = $261.31.
The maximum annual contribution for 2019 is therefore $997.15 ($2991.45 × 4/12).
The maximum pensionable salary for 2019 is therefore $19,133.33 ($57,400 × 4/12).
At the time of his death, on March 15, 2019, Benjamin was receiving a weekly salary of $900, and his pensionable salary was $9,000. His contributions must be withheld for the period from January to March, the period before his death. The maximum contribution for this period is calculated as follows:
- The basic weekly exemption is: $3,500 ÷ 52 weeks = $67.30.
- The weekly contributory earnings are: $900 - $67.30 = $832.70.
- The weekly QPP contribution withheld: $832.70 x 5.55% = $46.21.
The maximum annual contribution for 2019 is therefore $747.86 ($2,991.45 × 3/12).
The maximum pensionable salary for 2019 is therefore $14,350 ($57,400 × 3/12).