Calculating QPIP for Employee Source Deductions

Revenu Québec’s Parental Insurance Plan (QPIP) premium rates change on January 1st of each year.   As the employer, you withhold a portion of your employee’s salary plus you contribute a percentage of the employee’s salary, add the two amounts together and remit it to Revenue Québec on a monthly basis.    Here is the formula for QPIP calculations, with (a) being the employee’s premium percentage rate and (b) being the employer’s premium percentage rate:  QPIP = (employee’s gross salary x a) + (employee’s gross salary x b) = total amount remitted to Revenu Québec.  For QPIP premium rates, maximums and other details, refer to www.revenuquebec.ca/en/entreprise/retenues/methode_calcul/.

The QPIP rates for 2013 and calculating instructions are as follows: Revenu Québec QPIP employee premium rate for 2013 is 0.559%; employer premium rate is 0.782%.  In Québec, the maximum annual insurable earnings are $67,500; the maximum annual employee premium is $377.33 and the maximum annual employer premium is $527.85.  We’ll calculate the formula based on a gross salary amount of $400 per week.

QPIP = ($400 x 0.559% or $400 x .00559 = $2.24) + ($400 x .00782 = $3.13)

QPIP = $2.24 + $3.13 = $5.37

$2.24 is the employee’s weekly QPIP contribution which you withhold from his gross salary.  Therefore, his net salary after you deduct his EI plus his QPIP contribution would be $400 – $6.08 = $393.00 – $2.24 = $390.76 per week.

$3.13 is the employer’s weekly contribution to Revenu Québec that the employer must contribute from their own pocket for the employee’s QPIP benefit.

The total of the two above amounts, $5.37, is what the employer submits to Revenu Québec so that your employee will be eligible to collect benefits for maternity, paternity, parental and adoption.  If the month has four weeks, then $5.37 x 4 = $21.48 is what you submit; if the month has five weeks, then $5.37 x 5 = $26.85 is what you submit.  Monthly payments of this Remittance of Source Deductions and Employer Contributions can be made directly with the teller at the Caisse Populaire.

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