Employees whose province of employment is Quebec

 You may have employees whose province of employment (POE) is Quebec. This includes situations where you transfer your employee between one of your establishments in Quebec and one in another province or territory.

Depending on your situation, your withholding and reporting obligations will be different.

On this page

• Steps
• References

Steps

1. Confirm your employee’s POE

   When you pay remuneration or employment income such as salaries, wages, or commissions, the employee's province or territory of employment (POE) must be determined so that the proper deductions are withheld. This depends on whether your employee (including an employee with a full-time remote work agreement) “reports for work” at any of your establishments.

   If you are not sure of your employee’s POE, refer to: Determine the province of employment (POE)

      Employee transferred between your establishments

   If your employee is transferred from one of your establishments in Quebec to one in another province or territory (changing their POE), you need to confirm if the tax treatment of certain benefits and allowances provided to your employee is different. To confirm, refer to:

   • Determine if a benefit is taxable
   • Determine the tax treatment of payments other than regular employment income

2. Determine if you need to deduct CPP or QPP

   1. You must deduct either CPP or QPP contributions from the pensionable earnings you pay to your employee based on their POE for the pay period, regardless of your employee’s province or territory of residence:

      •    Quebec

        If your employee’s POE is Quebec, you must deduct QPP contributions using the QPP contribution rate 

      • Other province or territory

        If your employee’s POE is any other province or territory, you must deduct CPP contributions using the CPP contribution rate 

         Employee transferred between your establishments

      If your employee is transferred between your establishments in Quebec and another province or territory (changing their POE), you must deduct both CPP and QPP contributions in different pay periods within the same calendar year.

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      •  If your employee’s POE does not change within the same calendar year, continue to: Step 3 – Determine if you need to deduct using the federal or Quebec EI premium rate.

      • If your employee’s POE changed within the same calendar year, you must use a formula to reconcile the amounts of CPP and QPP you contributed.

         Continue to: Step 2b – How to reconcile contributions made to the CPP or QPP.

   2. How to reconcile contributions made to the CPP or QPP

      •  Quebec to  Other province or territory

        If your employee is transferred from one of your establishments in Quebec to another province or territory, you must take into account the QPP contributions you deducted from your employee throughout the year when calculating the maximum CPP contributions to deduct.

        Use the following formula to reconcile the amounts contributed to the CPP and QPP to make sure that enough contributions to the CPP are deducted and future benefits are not affected:

        Determine the conversion factor for CPP

        • CPP contribution rate
        • divide by QPP contribution rate 
        • equals Conversion factor

        Calculate the amount to take into account when determining your employee’s maximum CPP contributions

        • QPP contributions withheld from your employee’s pensionable earnings
        • multiply by Conversion factor
        • equals This is the amount to take into account when determining your employee’s maximum CPP contributions for the year
        Example – Calculation with CPP contributions

        The employer has establishments in both Quebec and Newfoundland. After the first 2 pay periods in March 2026, the employer transfers their employee Melodie to their Newfoundland establishment. Melodie had $400 in QPP contributions withheld from Melodie's 2 pay periods as an employee with a POE of Quebec.

        To determine the amount of CPP contributions to withhold, the employer applies the following formula to determine the amount to include when determining the employee’s maximum CPP contributions:

        Calculate the amount to take into account when determining your employee’s maximum QPP contributions for the year

        • $400 is the QPP contributions withheld from Melodie's 2 pay periods
        • multiply by 0.9444444 is the conversion factor for 2026
        • equals $377.78 is the amount to take into account when determining the employee’s maximum CPP contributions for the year
        Example – Calculation with CPP2 contributions

        The employer has establishments in both Quebec and Newfoundland. The employer transferred their employee Kamal to their Newfoundland establishment after Kamal had made the annual maximum QPP contribution and began to make QPP2 contributions in March 2026. Kamal had $40 in QPP2 contributions withheld from Kamal's additional pensionable earnings as an employee with a POE of Quebec.

        To determine the amount of CPP2 contributions to withhold, the employer applies the following formula to determine the amount to include when determining the employee’s maximum CPP2 contributions:

        Determine the conversion factor for CPP2

        • 4% is the CPP2 contribution rate
        • divide by 4% is the QPP2 contribution rate
        • equals 1 is the conversion factor

        Calculate the amount to take into account when determining your employee’s maximum QPP2 contributions for the year

        • $40 is the QPP2 contributions withheld from Kamal's 2 pay periods
        • multiply by 1 is the amount of the conversion factor
        • equals $40 is the amount to take into account when determining the employee’s maximum CPP2 contributions for the year

      • Other province or territory to     Quebec

        If your employee is transferred from one of your establishments in another province or territory to Quebec, refer to: Employee transferred from an establishment subject to the Canada Pension Plan to an establishment subject to the Quebec Pension Plan.

3. Determine if you need to deduct using the federal or Quebec EI premium rate

   1. You must deduct EI premiums from the insurable earnings you pay to your employee using EI premium rate based on their POE for the pay period, regardless of your employee’s province or territory of residence:

      •    Quebec

        If your employee’s POE is Quebec, you must deduct EI premiums using the Quebec EI premium rate , in addition to the Quebec Parental Insurance Plan (QPIP) premiums

        Learn more: Quebec Parental Insurance Plan Premiums

      • Other province or territory

        If your employee’s POE is any other province or territory, you must deduct EI premiums using the Federal EI premium rate 

         Employee transferred between your establishments

      If your employee is transferred between your establishments in Quebec and another province or territory (changing their POE), you must deduct EI premiums using both the federal and Quebec premiums rates in different pay periods within the same calendar year.

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      •  If your employee’s POE does not change within the same calendar year, continue to: Step 4 - Determine if you need to withhold income tax.

      • If your employee’s POE changed within the same calendar year, continue to: Step 3b - Determine the maximum EI premiums to deduct.

   2. Determine the maximum EI premiums to deduct

      If your employee is transferred between your establishments in Quebec and another province or territory, your employee’s maximum EI premium for the year in their employment with you is based on the provinces or territories where the first $68,900 of insurable earnings is paid for calendar year 2026.

      You must use the applicable EI premium rate until your employee reaches the maximum insurable earnings for the calendar year.

      Calculation example

      In 2026, an employee is paid $30,000 of insurable earnings while reporting to an establishment of their employer in Ontario. Part way through the year, their employer transfers them to reporting to one of their establishments in Quebec. The employee was paid an extra $52,000 by the same employer after the transfer. The maximum annual insurable earnings for calendar year 2026 is $68,900.

      The employee’s maximum premium is calculated as follows for calendar year 2026:

      •   Ontario – First POE

        • 1.63%
        • × $30,000
        • equals $489.00

      •   Quebec – Second POE

        • 1.30%
        • × $38,900
        • equals $505.70

      ---

      equals $994.70 is the total EI premiums to be deducted

4. Determine if you need to withhold income tax

   You must deduct provincial or territorial income tax from employment-related earnings you pay to your employee based on their POE for the pay period, regardless of your employee’s province or territory of residence:

   • You must deduct the federal income tax using the federal tax rate 

   • •   Quebec

       If your employee’s POE is Quebec, you must deduct Quebec provincial income tax and remit the provincial tax to Revenu Québec.

       You must report the income tax deducted on your employee’s RL-1 slip. Do not report Quebec provincial income tax on a T4 slip.

       Learn more: Source Deductions of Quebec Income Tax

     • Other province or territory

       If your employee’s POE is any other province or territory, you must deduct the applicable provincial or territorial income tax using the provincial or territorial tax rate 

       You must remit these amounts to the CRA and report the provincial or territorial income tax deducted on your employee’s T4 slip.

5. Report the payment on T4 slips

   You must report your employee’s earnings and the proper deductions for each POE on a separate T4 slip.

   • Box 10 – Province of employment
   • Box 14 – Employment income
   • Box 24 – EI insurable earnings
   • Box 26 – CPP/QPP pensionable earnings
     Special situation: Benefits and earnings taxable only in Quebec

     Certain taxable benefits and earnings are considered by Revenu Québec to be pensionable earnings for employees working in Quebec.

     Generally, the amount you report using box 26 will be more than the amount you report using box 14 in this situation. The CRA will process the T4 slip even if box 26 is more than box 14.

     Example 1 – Benefit taxable in Quebec – Unpaid leave

     Marion works for her employer in Quebec and is on an unpaid leave of absence. Marion's employer pays $750 in premiums to an employer-paid private health benefit plan on her behalf. Since the benefit is not taxable outside of Quebec, it is not income. When preparing Marion's T4 slip, Marion's employer will leave box 14 blank. Since the premiums are QPP pensionable, Marion's employer will report $750 in box 26, the QPP contributions withheld on the benefit in box 17, and fill in any other boxes on Marion's T4 slip as applicable.

     Example 2 – Benefit taxable in Quebec – Other earnings

     During the year, Julien received wages of $25,000 plus an $875 benefit that is only taxable in Quebec. When preparing Julien's T4 slip, Julien's employer will report $25,000 in box 14, $25,875 in box 26, and fill in any other boxes on Julien's T4 slip as applicable.

     Example 3 – Benefit taxable in Quebec and federally

     Stephane works for an employer in Quebec and did not receive any cash earnings. However, Stephane's employer gave Stephane a non-cash housing benefit valued at $1,100. When preparing Stephane's T4 slip, Stephane's employer will report $1,100 in boxes 14 and 26, and fill in any other boxes on Stephane's T4 slip as applicable.

     Learn more: Source Deductions and Employer Contributions

   • Box 56 – PPIP insurable earnings
   • Any applicable codes for taxable benefits

   Learn more: T4 slip – Information for employers

References