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Problem:

Quebec has come up with the Quebec Parental Insurance Plan that must be incorporated for all Quebec Employees. This will have to be set up in Paymate before you can start deducting during payroll. Rate, Form assignment and Maximum contribution per year are subject to change and must be update by end user. 

Solution:

To include QPIP calculation in your payroll, you need to add 3 payroll categories:

Steps:

  1. A Benefit for tracking the QPIP insurable amount
  2. A deduction for Employee’s contribution to QPIP
  3. A Benefit for Employer’s contribution to QPIP

Category for QPIP Insurable

Steps:

  1. Go To ‘Setup’ > ‘Payroll categories’
  2. Add a Benefit
  3. Assign a unique number and name to this category
  4. Type should be Formula
  5. The formula should be 100% of all the earnings and benefits that are QPIPable. For example, the formula should say:
    1. 100% of Salary +
    2. 100% of Hourly wages +
    3. 100% of Overtime 1+
    4. 100% of Overtime 2
  6. Assign this category to T4 Box 56
  7. This category should not be assigned to any boxes on T4A and RL1
  8. Make sure this category is not subject to any taxes
  9. Check off the ‘Maximum per year’ flag. The maximum amount is 71500.00 (Maximum contribution per year is subject to change and must be update by end user.)
  10. Check off the ‘Reset at year end’ flag.

This image shows a sample category, setup to be used as QPIP Insurable amount

 

Category for Employee’s contribution:

Steps: 

  1. Go To ‘Setup’ > ‘Payroll categories’.
  2. Add a deduction.
  3. Assign a unique number and name to this category.
  4. Type should be Formula.
  5. The formula should be defined as: 0.548 % of QPIP Insurable (Rate is subject to change and must be update by end user).
  6. Assign the category to T4 Box 55.
  7. Check off the ‘Maximum per year flag’. The maximum amount is 391.82
  8. ‘Reset at year end flag’ should be checked off 

The following image shows an example of QPIP deduction setup 

Category for Employer’s contribution:

Steps:

  1. Go To ‘Setup’ > ‘Payroll categories’.
  2. Add a Benefit.
  3. Assign a unique number and name to this category.
  4. Type should be Formula.
  5. The formula should be defined as: 0.767% of QPIP Insurable (Rate is subject to change and must be updated by end user).
  6. Make sure it is not subject to any taxes.
  7. Make sure category is NOT assigned to any T4 boxes.
  8. Check off the ‘Report as Employer QPIP’ flag.
  9. Check off the ‘Maximum per year flag’. The maximum amount is 548.41
  10. ‘Reset at year end flag’ should be checked off

The following image shows an example of Employer QPIP setup