Each year, we provide 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 to reduce your 1.4 times employer contribution if you provide your employees a short-term disability plan.
|EI premiums you deducted from your employees for the month||$195.50|
|Your share of EI ($195.50 × 1.4 )||$273.70|
|Total amount you remit for EI premiums||$469.20|
You stop deducting EI premiums when you reach the employee's maximum insurable earnings ($47,400 for 2013) or the maximum employee premium for the year ($891.12 for 2013). The maximum for Quebec is $720.48 for 2013.
The annual maximum insurable earnings ($47,400 for 2013) applies 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 was paid by the previous employer. 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?
We will credit or refund any overpayments to employees when they file their income tax and benefit return. There is no provision that provides a credit or refund to the employer in such circumstances.
Different EI rates apply for employees working in Quebec as a result of the establishment of the Quebec Parental Insurance Plan (QPIP).
For information on the current and previous rates and maximums, go to EI premium rates and maximums.