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.
EI premiums you deducted from your employees for the month
Plus: Your share of EI ($195.50 × 1.4)
Total amount you remit for EI premiums
You stop deducting employment insurance premiums when you reach the employee's maximum insurable earnings ($53,100 for 2019) or the maximum employee premium for the year ($860.22 for 2019). For Quebec, the maximum employee premium for 2019 is $663.75.
The annual maximum insurable earnings ($53,100 for 2019) 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 What should you do if your business goes through a restructure or reorganization, or amalgamates?.
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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