Calculating EI premiums
Each year, we give the maximum insurable earnings and rate for you to calculate the amount of EI to deduct from your employees.
You have to deduct EI premiums from insurable earnings you pay to your employees. In addition, you must pay 1.4 times the amount of the employee's premiums. You may qualify for a reduction of the employer contribution if you give your employees a short-term disability plan.
To calculate your employee's EI premiums using the manual calculation method, follow these steps:
Step 1: Enter the employee's insurable earnings $__________
Step 2: Enter the employee's EI premium rate for the year (See EI premium rates and maximums for current and prior year rates) __________
Step 3: Multiply the amount in step 1 by the rate in step 2 = $__________
The result is the EI premiums to be deducted for your employee.
You stop deducting employment insurance premiums when you reach the employee's maximum insurable earnings ($60,300 for 2022) or the maximum employee premium for the year ($952.74 for 2022). For Quebec, the maximum employee premium for 2022 is $723.60.
The annual maximum insurable earnings ($60,300 for 2022) apply to each job the employee holds with different employers (different business numbers). If an employee leaves one employer during the year to start work with another employer, the new employer also has to deduct EI premiums without taking into account what the previous employer paid. This is the case even if the employee has paid the maximum premium amount during the previous employment.
However, if your business went through a restructure or reorganization, go to Changes to your business and Canada Revenue Agency program accounts.
We will credit or refund any overpayments to employees when they file their income tax and benefit return. There is no provision that allows a credit or refund to the employer in such circumstances.
Different EI rates apply for employees working in Quebec as a result of the creation of the Quebec Parental Insurance Plan (QPIP).
EI premium rates and maximums
For the current and previous rates and maximums, go to EI premium rates and maximums.
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