Question

QPP contributions on regular earnings can be calculated using the following RQ-approved methods _________.

Answer 1

There are two RQ-approved methods to calculate QPP contributions on regular earnings: basic method and enhanced method.

Step-by-step explanation:

QPP contributions on regular earnings can be calculated using two RQ-approved methods:

1. The first method is the basic method, which involves calculating contributions based on a fixed percentage of the employee's earnings.
2. The second method is the enhanced method, which takes into account the employee's pensionable earnings and applies different contribution rates to different portions of the earnings.

For example, let's say an employee's regular earnings for a pay period are $2,000. Under the basic method, if the contribution rate is 5%, the QPP contribution would be $100 (5% of $2,000). Under the enhanced method, if the contribution rate for the first $1,000 is 4% and the rate for the next $1,000 is 6%, the QPP contribution would be $70 [(4% of $1,000) + (6% of $1,000)].