5.10 EI Premiums

You have to deduct EI premiums from your employees' insurable earnings on every dollar until you reach the yearly maximum insurable earnings ($51,300 for 2017) or the maximum employee premium for the year ($836.19 for 2017). There is no age limit for deducting EI premiums.

You also must contribute 1.4 times the EI premium withheld for each employee.

For example:

EI premiums deducted from employee in the month

$400

Your share of EI ($400 x 1.4)

$560

Total amount you remit for EI premiums

$960


You may qualify to reduce your 1.4 times employer contribution if you provide your employees with a short-term disability plan. See the guide "EI Premium Reduction Program" for information about what types of plans qualify for reduced premiums. You have to register with the EI Premium Reduction Program and submit a copy of your short-term plan.

The annual maximum insurable earnings apply to each job that the employee holds with different employers. Therefore, if an employee leaves one employer and starts a new job with a different employer, the second employer must deduct EI premiums without factoring in the amount the previous employer paid, even if the employee has paid the maximum premium at the first job. Any overpayments will be refunded to the employee when they file their income tax but the employer does not get a refund.

<5.9 CPP Deductions and Contributions

5.11 Insurability of Employment>

Last modified: Wednesday, 18 January 2017, 8:48 AM