Managing payroll in Quebec comes with unique responsibilities and provincial deductions that differ from the rest of Canada. Whether you’re hiring your first employee or already running a growing team, understanding Quebec-specific payroll requirements is essential to stay compliant and avoid penalties.

This guide breaks down the key components of payroll in Quebec, including deductions for the Quebec Pension Plan (QPP) and the Quebec Parental Insurance Plan (QPIP), as well as essential employer obligations for 2025.

Key Payroll Deductions in Quebec

Unlike other provinces, Quebec has its own versions of certain federal programs. As an employer, you must calculate and remit several deductions from your employees’ pay:

1. Quebec Pension Plan (QPP)

The QPP is Quebec’s version of the Canada Pension Plan (CPP). All employees aged 18 to 70 who earn more than a minimum threshold must contribute.

• 2025 QPP Rate: 6.7% (employee) and 6.7% (employer), for a combined rate of 13.4%
• Maximum pensionable earnings: $73,200
• Basic exemption: $3,500

🧮 Example: For an employee earning $50,000, the QPP contribution would be based on $46,500 of pensionable earnings.

2. Quebec Parental Insurance Plan (QPIP)

The QPIP provides benefits to new parents and is separate from Employment Insurance (EI).

• 2025 QPIP Rate:
  • Employee: 0.526%
  • Employer: 0.736%
• Maximum insurable earnings: $94,000

Both employees and employers must contribute, and the deduction must appear on the employee’s pay stub.

3. Employment Insurance (EI) – Quebec Rate

While EI is a federal program, Quebec has a reduced rate because QPIP replaces EI parental benefits.

• 2025 EI Rate in Quebec:
  • Employee: 1.32%
  • Employer: 1.848%
• Maximum insurable earnings: $63,200

Other Required Payroll Deductions

In addition to QPP, QPIP, and EI, employers in Quebec must also deduct and remit:

• Federal Income Tax
• Quebec Provincial Income Tax (calculated using the TP-1015 form or payroll software)
• Health Services Fund (HSF) – employer contribution based on payroll size and sector
• Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST) – workplace health and safety premium
• Training Contribution (1%) – if payroll exceeds $2 million, employers must invest in employee training or remit the contribution

Payroll Frequency and Payslips

You can pay employees weekly, biweekly, or monthly, but the payment frequency must be agreed upon in the employment contract. Each pay period must include a detailed payslip that shows:

• Gross salary
• Deductions (QPP, QPIP, EI, income tax, etc.)
• Net pay
• Employer contributions

Payslips must be clear and accurate to comply with Quebec labor standards.

Remitting Payroll Deductions

Employers are required to remit all payroll deductions to the appropriate authorities:

• Revenu Québec: QPP, QPIP, provincial tax, and HSF
• Canada Revenue Agency (CRA): EI and federal tax
• CNESST and Commission des partenaires du marché du travail (CPMT) for health and training obligations

The remittance schedule depends on your average monthly withholdings. New employers typically remit monthly, but larger businesses may be required to remit biweekly or more frequently.

Late remittances can result in interest charges and penalties—always verify your due dates on Revenu Québec’s and CRA’s portals.

Employer Responsibilities Beyond Deductions

Payroll isn’t just about deductions—it also involves:

• Issuing RL-1 and T4 slips annually to employees
• Filing summaries with Revenu Québec and CRA
• Staying current on annual rate updates and threshold changes
• Using compliant payroll software or working with a payroll expert to automate deductions and reporting

Final Thoughts

Quebec’s payroll system has distinct rules that every employer must follow. From QPP and QPIP contributions to income tax and training obligations, it’s vital to stay organized and up to date.

If payroll management feels overwhelming, the experts at Info C Plus can help. We offer personalized payroll solutions for small and medium-sized businesses across Quebec.

Need help simplifying your payroll process?
Contact Info C Plus today for expert payroll support tailored to Quebec employers.