Parental, adoption and maternity benefits are available for employees with the Quebec Parental Insurance Plan (QPIP). QPIP is provides some form of improvement to the similar benefits from the previous Employment Insurance Act. Employers with works based in Quebec are mandated to take a reduced E.I and Quebec premiums.
QPIP takes the place of the federal Employment Insurance, and provides the benefits of maternity and paternity leave, parental leave and adoption leave, which were previously provided by the federal EI.
In 2006, E.I rate had been reduced for employees in. But the maximum E.I insurable earnings remain the same in other provinces in Canada, with the employer premium rate still higher than those of the employees.
Administration of the QPIP
The Quebec Revenue Ministry is the one that supervises and administers the collection of QPIP premiums. The QPIP premiums apply to all who receive income from employers, to self-employed individuals. Self-employed individuals have QPIP premiums in their instalment payments.
Scope and requirement
The QPIP benefits are only eligible only to those who work and receive income, and are annually contributing to the QPIP premiums. Self-employed individuals are still able to claim benefits from the E.I sickness and compassionate care insurances, under the federal Employment Insurance for the self-employed. But, like any of those who wish to receive the same benefits, they are required to contribute the premiums and apply for the program.
Québec parental insurance plan mandates employers and employees to pay the annual premium. This is for the payment of benefits to employees who take unpaid maternity, paternity, adoption or parental leave.
QPIP premiums must be paid regardless of age, whether or not the employee is a beneficiary of the plan, and location. Employers must withhold and pay premiums on salaries to be deducted by premiums if one or more of the conditions for source deduction and contribution are met. The withholding and payment of QPIP premiums must continue until the annual maximum insurable earnings for salary paid for employees are met.
Employers must remit of both theirs and their employee’s premium to the QPIP. The premiums are then remitted to the Parental Insurance Fund. The benefits provided to employees come from the Ministère du Travail, de l’Emploi et de la Solidarité sociale, where the Parental Guidance Fund remits the funds. An RL-6 slip is then issued on to each beneficiary.
Quebec Parental Insurance Plan
The QPIP provides additional benefits to Employment Insurance, such as the removal of the two-week waiting period, increase of paternity leave up to five weeks, as well as the increase in maternity, parental and adoption benefit.