Coverage and adjustments for trans-border employees
Trans-border employees are any individuals who:
- live in Quebec and work in another province
- work in Quebec and live in another province
Information is available on how to report for trans-border situations when individuals file their returns each year.
Employers should deduct using the correct employment insurance (EI) rate depending on province of employment. The employee's province or territory of residence has no bearing on the EI deductions at source.
The Canada Revenue Agency and Revenu Québec will do any year-end adjustments between the Quebec Parental Insurance Plan (QPIP) and EI deductions for trans-border employees when those employees file their income tax and benefits return.
For information on QPIP, that it be regarding administration, rates, maximum insurable earnings, payment of benefits or how to complete the Quebec information slips, visit Revenu Québec.
When you give the same employee more than one T4 slip for the year, you should report the insurable earnings amount for each period of employment in box 24 of each T4 slip. Reporting the correct EI insurable earnings in box 24 will reduce unnecessary pensionable and insurable earnings review (PIER) reports for EI deficiency calculations, especially if the employee worked both inside and outside of Quebec.
An employee earned $32,000 working in Ontario from January 2022 to June 2022 and earned $32,000 working in Quebec for the remainder of the year with the same employer. In addition to any other boxes that need to be completed, fill in boxes 14 and 24 as follows:
- Ontario T4 slip – box 14 = $32,000 and box 24 = $32,000
- Quebec T4 slip – box 14 = $32,000 and box 24 = $28,300 (calculated as the maximum insurable earnings for 2022 of $60,300 - $32,000 already reported on T4 slip with Ontario as province of employment = $28,300).
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