The Québec Parental Insurance Plan is funded by:

• A. Employees through payroll deductions only
• B. Employees through payroll deductions, employers who pay a premium based on the employee's insurable earnings and self-employed persons
• C. Government subsidies
• D. Employers only

Answer: (B)

The funding for the Québec Parental Insurance Plan comes from premiums paid by three groups: employees through payroll deductions, employers who contribute based on the employee’s insurable earnings, and self-employed individuals who choose to participate by paying premiums. This structure ties the cost of the plan directly to those who benefit from it, rather than relying on government subsidies or funding from other sources. It’s not funded by government subsidies, and it isn’t limited to just employees or just employers. The amount is determined by insurable earnings, which helps calibrate the premium to earnings level.