(PF1 Exam – Net Pay Calculation Template Worksheet: Quebec)Question ID: pf1-exam-npc-q-fMara Poirier works for Affordable...

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(PF1 Exam – Net Pay Calculation Template Worksheet: Quebec)

Question ID: pf1-exam-npc-q-f

Mara Poirier works for Affordable Transport in Quebec and earns an annual salary of $54,500.00, paid on a semi-monthly basis.

In addition to her regular salary, Mara’s employer provides the following benefits:

Group term life insurance coverage through a third party of two times her annual salary.

Monthly group term life insurance premiums are $0.57 per $1,000.00 of coverage, excluding taxes.

Private health insurance benefits with a monthly premium of $260.00, excluding taxes.

The tax on insurance premiums in Quebec is 9%.

Mara’s federal TD1 claim code is 3 and her provincial TP-1015.3-V deduction code is C.

Mara will not reach the annual maximums for QPP, EI, or QPIP in this pay period.

Required: Calculate Mara’s net pay, following the order of the steps in the net pay template.

EXHIBIT A — Net Pay Template (Fill in all blanks)

Earnings / Income Bases

Step 1 — Calculate Mara’s gross earnings for this pay period (GTE).

[ ____________________________________________ ]

Step 2 — Calculate the pensionable earnings (PE).

[ ____________________________________________ ]

Step 3 — Calculate the insurable earnings (IE).

[ ____________________________________________ ]

Step 4 — Calculate the net taxable income (CRA) (NTI).

[ ____________________________________________ ]

Step 5 — Calculate the net taxable income (RQ) (NTI).

[ ____________________________________________ ]

Step 6 — Calculate Mara’s Quebec Pension Plan (QPP) contribution.

[ ____________________________________________ ]

Step 7 — Calculate Mara’s Employment Insurance (EI) premium.

[ ____________________________________________ ]

Step 8 — Calculate Mara’s Quebec Parental Insurance Plan (QPIP) premium.

[ ____________________________________________ ]

Step 9 — Determine Mara’s federal income tax.

[ ____________________________________________ ]

Step 10 — Determine Mara’s Quebec provincial income tax.

[ ____________________________________________ ]

Step 11 — Calculate Mara’s total deductions.

[ ____________________________________________ ]

Step 12 — Calculate Mara’s net pay.

[ ____________________________________________ ]

Explanation:

Step 1 — Mara’s gross earnings / taxable earnings components

Semi-monthly salary = $54,500.00 ÷ 24 = $2,270.83

Life insurance coverage = 2 × $54,500 = $109,000

Monthly premium (excl. tax) = 109 × $0.57 = $62.13

9% insurance premium tax = $62.13 × 1.09 = $67.72

Semi-monthly taxable benefit = $67.72 ÷ 2 = $33.86

Health premium (excl. tax) = $260.00

9% insurance premium tax = $260.00 × 1.09 = $283.40

Semi-monthly taxable benefit (Quebec) = $283.40 ÷ 2 = $141.70

GTE (total taxable in Quebec) = 2,270.83 + 33.86 + 141.70 = $2,446.39

Step 2 — Pensionable earnings (PE)

For this calculation, treat salary + taxable group term life as pensionable for QPP withholding, while EI remains non-insurable for non-cash benefits.

PE = 2,270.83 + 33.86 = $2,304.69

Step 3 — Insurable earnings (IE)

IE = salary only = $2,270.83

Step 4 — Net taxable income (CRA) (NTI)

Federal taxable income uses salary plus taxable benefits used for federal withholding tables here.

NTI (CRA) = $2,304.69

Step 5 — Net taxable income (RQ) (NTI)

NTI (RQ) = $2,446.39

Step 6 — QPP contribution

Use the QPP employee rate (basic + additional) and apply the basic exemption prorated per pay period.

Basic exemption per semi-monthly period = $3,500 ÷ 24 = $145.83

Contributory earnings = PE − 145.83 = 2,304.69 − 145.83 = $2,158.86

QPP = 2,158.86 × 6.4% = $138.17

QPP = $138.17

Step 7 — EI premium

Quebec EI employee rate for 2026: 1.30%.

EI = 2,270.83 × 0.0130 = $29.52

Step 8 — QPIP premium

Use the Revenu Québec employee QPIP rate shown for 2026.

QPIP = 2,270.83 × 0.00430 = $9.76

Step 9 — Federal income tax

From the CRA Quebec federal tax deductions table (24 pay periods), at pay $2,304.69 (range 2288–2306) and claim code 3, the federal tax is:

Federal tax = $139.95

Step 10 — Quebec provincial income tax

From TP-1015.TI.24 (24 pay periods) at remuneration $2,446.39 (range 2445.00–2464.99) and deduction code C, the tax is:

Quebec tax = $214.81

Step 11 — Total deductions

QPP 138.17

EI 29.52

QPIP 9.76

Federal 139.95

Quebec 214.81

= $532.21

Total deductions = $532.21

Step 12 — Net pay

Net pay is based on cash pay (salary) minus deductions (tax still applies even when part of taxable income is a benefit).

Net pay = 2,270.83 − 532.21 = $1,738.62

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(PF1 Exam – Net Pay Calculation Template Worksheet: Quebec)Question ID: pf1-exam-npc-q-fMara Poirier works for Affordable...

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