Canadian Payroll Compliance Legislation Practice Exam 2026 - Free Payroll Compliance Practice Questions and Study Guide

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Which statement best describes funding for the Québec Parental Insurance Plan?

It is funded entirely by government subsidies

It is funded by employees, employers, and self-employed persons

Funding for the Québec Parental Insurance Plan is provided through premiums on insurable earnings paid by both employees and their employers, with self-employed individuals able to participate by paying both portions. In practice, employees have deductions from their pay, employers remit a matching contribution, and self-employed people who opt in contribute the equivalent amounts to be eligible for benefits. This shared funding model means the plan isn’t financed solely by government subsidies, nor by employees alone, nor by employers alone.

It is funded only by employee payroll deductions

It is funded solely by employer contributions

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