You must deduct Employment Insurance premiums on each dollar of your employees' insurable earnings until you reach the maximum yearly insurable earnings ($60,300 for 2022) or the maximum employee premium for the year ($952.74 for 2022). You will stop deducting EI premiums when your employee has reached the maximum insurable earnings amount or has reached the maximum employee premium for the year.  There is no age limit for deducting EI premiums.

 

 

For example:

 

 

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 the types of plans that qualify.  To benefit from a reduced employer premium rate, you must register with the EI Premium Reduction Program and submit an application form and copy of the short-term disability plan you are providing to your employees.

 

The maximum annual insurable earnings amount applies to each job the employee holds, even 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 yearly premium at the first job. Any overpayments will be refunded to the employee when they file their income tax return, but the employer will not receive a refund.