A Primer on Payroll in Canada Example: Outside of Quebec Pay Type 1st pay Commission EI rate EI premium 2nd pay Commission EI rate EI premium Salary + Commission x $5,000.00 1.58% $ 79.00 x $3,000.00 1.58% $ 47.40 Example: Within Quebec Pay Type 1st pay Commission EI rate EI premium 2nd pay Commission EI rate EI premium Salary + Commission x $5,000.00 1.20% $ 60.00 x $3,000.00 1.20% $ 36.00 QUEBEC PARENTAL INSURANCE PLAN As insurable hours are already pre-determined by EI regulations; there are no additional provisions for insurable hours required in relation to the Quebec Parental Insurance Plan. When commissions are paid on a regular or irregular basis or are paid in combination with a regular salary or draw, the QPIP premiums are calculated on a 'first dollar earned' basis. QPIP premiums are calculated by multiplying the earnings being paid by the QPIP rate, up to the annual maximum QPIP premiums. For 2020, the annual maximum is $ 387.79 based on $78,500.00 x 0.494%. Regardless of the amounts being paid (unless the employee has already contributed the maximum premiums), multiply by the amount by QPIP rate to arrive at the total QPIP premiums to withhold from the payment. © The Canadian Payroll Association/L'Association canadienne de la paie 2020 11-71