Remuneration Not Subject to Québec Pension Plan (QPP) Contributions
You are not required to withhold or pay Québec Pension Plan (QPP) contributions on the following types of remuneration:
- the salary or wages paid to an employee
- for excepted employment,
- before or during the month in which the employee turns 18,
- as of the month following the month that includes the date (set by Retraite Québec) on which the employee becomes disabled, to the end of the month in which the employee stops receiving the disability pension,
- after the employee's maximum contribution for the year is reached;
- the salary or wages paid to an employee who is temporarily posted to Québec and is covered by a social security agreement;
- earnings loss benefits, supplementary retirement benefits and career impact allowances (formerly “permanent impairment allowances”) paid under the Veterans Well-being Act (federal statute);
- certain amounts paid further to an industrial accident (CNESST);
- retiring allowances;
- death benefits;
- pension benefits;
- an amount paid under a retirement compensation arrangement or resulting from the making of such an arrangement;
- patronage dividends;
- wage loss replacement benefits paid by an insurer under a wage loss replacement plan to which the employer contributed;
- amounts paid by a trustee of an employee trust;
- amounts paid by a custodian of an employee benefit plan;
- amounts paid by a trustee of a profit-sharing plan, if the amounts can reasonably be attributed to an amount paid to the trustee after May 12, 1994.
- fees calculated on an hourly, half-day or full-day basis that are paid to a person who is appointed:
- by the government as a member of a commission, including a public inquiry commission, an evaluation committee, a committee or panel of experts or a working group created for a set period, or
- as a member of a candidate selection or review committee established for that purpose under a Québec statute.
You are not required to withhold or pay QPP contributions on the following benefits:
- a taxable benefit granted in kind if no amount was paid to the employee for the pay period during which the benefit was granted;
- a benefit from amounts you paid to acquire, on behalf of one of the employees, a share or fraction of a share issued by the Fonds de solidarité FTQ or by Fondaction;
- a taxable benefit (including an allowance) in respect of a residence or living accommodation provided to a member of the clergy or a religious order, or to a regular minister of a religious denomination, provided the person is entitled to deduct this benefit in his or her income tax return.
To see which source deductions and employer contributions to make on amounts you pay to employees and beneficiaries, click Remuneration Subject to Source Deductions and Employer Contributions.