Quebec Parental Insurance Plan (QPIP) premiums
The Quebec Parental Insurance Plan (QPIP) is the plan Quebec established by its Act respecting parental insurance. Subject to exceptions in the Act, every employer is required to pay a premium for each employee, and employees resident in Québec at the end of a year also pay one. The CRA says a reduced EI premium is deducted alongside it.
A buyer meets QPIP when taking over a business with employees in Quebec. Payroll there carries QPIP premiums in addition to a reduced federal EI premium, and the agency that collects them differs from the CRA.
What the law says
Quebec’s Act respecting parental insurance establishes a parental insurance plan, and provides that every employer is required, for a year, to pay the premium determined under Division III in respect of each employee, subject to the Act’s other provisions. The CRA says that if your employees’ province of employment is Quebec, you deduct a reduced EI premium in addition to QPIP premiums, and it points to Revenu Québec for the QPIP rules. This entry covers Quebec only; check the rules in the province where the business is.
What to check or ask
- Whether employees’ province of employment is Quebec
- Whether QPIP premiums were remitted to Revenu Québec up to closing
- Whether the payroll provider applies the reduced EI premium for those staff
Closing-day steps are in how to handle payroll on closing day. Compare employment insurance premiums.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Gouvernement du Québec (Légis Québec)GovernmentAct respecting parental insurance
- 02Canada Revenue AgencyGovernmentAbout the deduction of EI premiums
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