CPP and QPP When an Employee Transfers Between Another Province and Quebec
When you have a place of business operating in Quebec and in any other Province and you transfer an employee between locations during a calendar year, there are special reporting requirements that need to be followed.
If an employee is transferred in the middle of a pay period, do not divide the contributions between the CPP and QPP . Instead, all of the employee's earnings for the pay period are subject to the plan that governs the establishment to which the employee was transferred. When calculating the amount of CPP contributions, when an employee is transferred from Quebec to another province, do take into account the QPP contributions already deducted. The total of the CPP and QPP contributions to both plans cannot be more than the maximum CPP contributions for the year. Effective January 1, 2014, if an employer transfers an employee to Quebec from another province, the employer must multiply the total CPP contributions withheld from the employee since the beginning of the year by a weighting factor to calculate the maximum QPP contribution to deduct. Calculate the weighting factor by dividing the QPP contribution rate for the year by the CPP rate for the year.
An employee transferred between provinces, will not only need 2 X T4s slips, but with one of the provinces being Quebec, will need an RL-1 too. One T4 slip will show the province of employment as Quebec and will include the remuneration earned while in the province of Quebec, the Quebec Pension Plan (QPP) contributions deducted, the applicable pensionable earnings and any other applicable reportings. The second slip will show the other Province as the Province of employment. It will include the Canada Pension Plan (CPP) contributions deducted, the applicable pensionable earnings, and any other applicable reportings.