QPP and QPIP contributions must be collected on employment and business income, but are they deductible?
Employer, employee…or both?
If you are an employee, you are required to pay the employee portion. You will therefore be entitled to a tax credit on your contribution on your federal income tax return only.
If you are self-employed, you must pay the employee and employer portion.
- The employee portion will entitle you to a tax credit on your federal income tax return.
- The employer portion will entitle you to a deduction at both the federal and the provincial level.