Chapter 8 – Québec Legislation: Key Payroll Vocabulary

Vocabulary flashcards summarizing essential terms, agencies, rates and legislative concepts from Chapter 8, Québec Legislation, to aid exam review and payroll practice.

Revenu Québec (RQ)

Provincial tax authority that collects Québec income tax, QPP and QPIP contributions, HSF, CNESST and WSDRF amounts, and enforces filing, registration, remittance and reporting requirements.

Retraite Québec

Agency that administers the Québec Pension Plan, public-sector pension plans, supplemental pension plans and voluntary retirement savings plans.

Ministère du Travail, de l’Emploi et de la Solidarité sociale (MTESS)

Provincial ministry that oversees employment policies and co-manages the Québec Parental Insurance Plan (QPIP).

Québec Pension Plan (QPP)

Mandatory provincial pension plan providing retirement, disability and survivor benefits to Québec workers; funded by employer and employee contributions.

Yearly Maximum Pensionable Earnings (YMPE)

Annual earnings ceiling on which the first QPP contribution is calculated ($71,300 for 2025).

Annual Basic Exemption (QPP)

$3,500 amount employees can earn before QPP contributions begin; prorated by pay frequency for pay-period calculations.

First QPP Contribution

6.40 % employee and employer deduction applied to contributory earnings up to the YMPE.

Yearly Additional Maximum Pensionable Earnings (YAMPE)

Upper earnings ceiling ($81,200 for 2025) on which the second QPP contribution is applied.

Second QPP Contribution

4 % employee and employer deduction applied to pensionable earnings between the YMPE and YAMPE.

Enhanced QPP Contribution

Portion of QPP contributions above the pre-2019 5.40 % rate (plus the second 4 % tier) that is deductible from taxable income.

Pensionable Employment

Work in Québec under a contract of service that requires QPP contributions, unless specifically exempted by legislation.

Pensionable Earnings (PE)

Salary, wages and taxable benefits on which QPP contributions are calculated.

Proration of QPP Maximum

Adjustment of an employee’s annual QPP maximum contribution when they turn 18, become disabled or die during the year.

Employment Insurance (EI)

Federal program providing income replacement; Québec employees contribute at a reduced 1.31 % rate (2025) because they also pay QPIP.

Maximum Insurable Earnings (MIE)

Annual earnings ceiling on which EI premiums are calculated ($65,700 for 2025).

Québec Parental Insurance Plan (QPIP)

Provincial insurance program that pays maternity, paternity, parental and adoption benefits; funded by employer and employee premiums.

QPIP Premium Rate (2025)

0.494 % employee and 0.692 % employer applied to insurable earnings up to $98,000.

Insurable Earnings (IE)

Cash remuneration and certain taxable benefits on which EI and QPIP premiums are assessed.

Source Deductions Return – TP-1015.3-V

Form on which Québec employees claim provincial personal tax credits, deductions or extra tax, establishing their deduction code.

Deduction Code (Québec)

Letter assigned from TP-1015.3-V totals that payroll uses when applying RQ’s income-tax tables.

Source Deduction Table – TP-1015.TI-V

Revenu Québec tables that show pay-period provincial income-tax amounts by deduction code and earnings range.

Formulas to Calculate Source Deductions – TP-1015.F-V

Mathematical formulas published by RQ for software or manual calculation of Québec source deductions and contributions.

WebRAS

Revenu Québec’s online calculator for QPP, QPIP, Québec income tax and HSF amounts on a single payment.

Health Services Fund (HSF)

Employer-only contribution (1.25 %–4.26 %) based on Québec wages; rate depends on worldwide payroll size and employer type.

Worldwide Payroll (HSF)

Total annual remuneration paid by an employer and related entities globally; used to determine the organization’s HSF rate.

Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST)

Québec body that administers occupational health & safety insurance, labour standards and pay-equity enforcement.

CNESST Health & Safety Premium

Mandatory insurance premium assessed on Québec employers to fund workplace injury compensation.

Labour Standards Contribution (0.06 %)

CNESST levy on Québec payroll (to QPIP maximum per employee) that funds administration of the Act respecting Labour Standards.

Workforce Skills Development and Recognition Fund (WSDRF)

Requirement that employers with Québec payrolls over $2 million spend 1 % on eligible training or pay the shortfall to RQ.

Act respecting the protection of personal information in the private sector

Québec privacy statute regulating collection, use and disclosure of personal data by private organizations.

Bill 64 (2021)

Modernization of Québec privacy law introducing privacy officers, breach reporting, privacy impact assessments and large fines.

Supplemental Pension Plans Act

Québec law governing registration, funding and administration of employer-sponsored pension plans (traditional and simplified).

Simplified Pension Plan (SPP)

Defined-contribution pension plan administered by a financial institution, designed for small employers and regulated by Retraite Québec.

Voluntary Retirement Savings Plan (VRSP)

Auto-enrol, employee-funded retirement plan employers must offer when criteria are met; contributions by employees are voluntary and employers are optional.

Yearly Basic Pay-Period Exemption (QPP)

Annual $3,500 exemption divided by pay frequency (e.g., $67.30 weekly) deducted before calculating first QPP contribution.

Penalty for Late Québec Remittance

7 % (days 1–7), 11 % (days 8–14), 15 % (day 15+) of overdue RQ amounts such as QPP, QPIP, tax or HSF.

Employee-Employer Relationship (RQ)

Status assessment based on six criteria—subordination, financial risk, ownership of tools, task integration, specific results and parties’ intent.

Subordination (Criterion 1)

Degree of control exercised by a payer over how, when and where the worker performs tasks; key test of employment status.

Financial or Economic Criterion

Assessment of who assumes business costs and risks; employees bear none, self-employed may profit or incur losses.

Ownership of Tools Criterion

Employee generally uses employer-owned tools; self-employed provide and pay for their own equipment.

Integration of Tasks Criterion

If services form an integral part of payer’s business, worker is likely an employee; external specialist services indicate self-employment.

Specific Work Results Criterion

Self-employed are engaged for a defined deliverable after which the relationship ends; employees provide ongoing services.

Parties’ Attitude Criterion

Documentation and behaviour reflecting whether both sides treat the relationship as employment or independent contracting.

Successive Employers (Québec)

When a business acquires or amalgamates another without interrupting service, new employer must consider prior QPP/QPIP deductions.

Prorated QPP Maximum

Reduced annual QPP cap calculated when contributions apply for only part of the year (e.g., new 18-year-old or disability).

Maximum Employee QPP (2025)

$4,339.20 for first contribution plus $396.00 for second contribution, totalling $4,735.20.

Maximum Employee QPIP (2025)

$484.12—calculated as 0.494 % of $98,000 insurable earnings.

Maximum Employee EI in Québec (2025)

$860.67—calculated as 1.31 % of $65,700 insurable earnings.

Net Taxable Income (Québec)

Earnings minus RRSP/RPP contributions, enhanced QPP deduction, northern allowance and RQ-authorized amounts; basis for provincial tax.

Enhanced C/QPP Deduction

Tax-deductible amount equal to the enhanced portion of employee C/QPP contributions, reducing net taxable income.

Basic Personal Amount (Québec 2025)

$18,571 claim on TP-1015.3-V that shelters equivalent income from provincial tax.

Payroll Worldwide

Combined salaries and wages of associated employers everywhere; used for Québec HSF rate determination.

Privacy Officer (Bill 64)

Individual (default CEO) responsible for compliance with Québec private-sector privacy law; role may be delegated in writing.