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- Contribution to the Québec parental insurance plan
Québec parental insurance plan premiums
On March 1, 2005, the Québec government and the federal government signed a final agreement fixing the terms and conditions for implementing the Québec parental insurance plan (QPIP). The plan provides for the payment of benefits to an employee who takes a maternity, paternity, adoption or parental leave during which he or she sustains an interruption of earnings. Revenu Québec has been responsible for collecting QPIP premiums since January 1, 2006. The new premium applies to employers, employees and self-employed workers.
Employers and employees
Salaries and wages have been subject to QPIP premiums since January 1, 2006. The maximum amount of insurable earnings for 2007 is $59,000.
As a rule, an employer must deduct employee premiums from the salary or wages paid to any employee who reports for work at one of the employer's establishments located in Québec, or whose salary or wages are paid through one of the employer's establishments located in Québec (if the employee is not required to report for work at any of the employer's establishments). The employer must also pay the employer premium.
The salary or wages subject to QPIP premiums correspond to
- the amount of insurable earnings determined under the Employment Insurance Act; or
- an amount equivalent to the insurable earnings so determined, in the case of persons not engaged in insurable employment or persons engaged in excluded employment, as defined in the Act and in the Employment Insurance Regulations.
To calculate QPIP premiums, refer to the publication Table for Québec Parental Insurance Plan Premiums (TP-1015.TA-V) or the mathematical formulas in section 13.5 of the Guide for Employers: Source Deductions and Contributions (TP-1015.G-V).
To remit your employee and employer QPIP premiums, use form TPZ-1015.R.14.1-V, TPZ-1015.R.14.2-V, TPZ-1015.R.14.3-V or TPZ-1015.R.14.4-V, according to your remittance frequency. The RL-1 slip (Revenus d'emploi et revenus divers – in French only) includes two new boxes and the Summary of Source Deductions and Employer Contributions (form RLZ-1.S-V) has been modified to provide for the QPIP.
Self-employed workers
Individuals who are self-employed must base their QPIP premiums on the net income of the business they carry on (either directly or as an active member of a partnership). If you are self-employed, you are required to pay your QPIP premium when you file your income tax return or, if applicable, when you remit your instalment payments.Ù
The premium rate for self-employed workers is 0.737%. The maximum amount of insurable earnings for 2007 is $59,000.
| Example |
George, who is self-employed, reports income of $35,000 on line 27 of schedule L of his 2006 income tax return. His QPIP premium for 2006 is $257.95 ($35,000 x 0.737% = $257.95). |
If you are required to make instalment payments during 2007, you must also make such instalments for the QPIP premium.
If you choose to remit the amount of your instalment payments calculated by Revenu Québec, you do not have to calculate your QPIP premium because Revenu Québec has already taken it into account. However, if you choose to calculate the amount of your instalment payments yourself, you should note that form TP-1026-V, Calculation of Instalment Payments to Be Made by Individuals, includes the calculation of the QPIP premium.
For more information concerning QPIP premiums, consult the Guide for Employers: Source Deductions and Contributions (TP-1015.G-V).
