Every year the Canada employment insurance commission releases the maximum insurable earnings for each year. This allows employers and employees to keep educated on the amount of EI payroll burdens that need to be deducted and determine what the maximum of this amount will be. The Government of Canada has announced that it will freeze the Employment insurance premium rate at the level of $1.88 per $100 for the year of 2014 and it will also not increase in the years of 2015 and 2016. The Commission also recently announced that the EI maximum will increase to $48,600 from $47,400 in 2013.
For employees that reside in Quebec who are covered by the Quebec Parental Insurance plan their EI reduction will be $0.35 per hundred. This means that they will pay $1.35 per $100 of insurable earnings.
Employers that register under the Premium Reduction Program (PRP) will also have reductions. These reductions will range from $0.22 to $0.37 per $100 of insurable earnings. This will provide employers across Canada $852 million in EI burden assistance. – These employers will be notified individually.
Canada still has a few challenges in the economy even though it has seen a steady job formation since the end of the global recession. The Government of Canada is taking action to ensure that Canadian residents and employers will see stability and certainty of no fluctuating EI rates over the next 3 years. In 2014 this will leave $660 million with employers and employees that reside in Canada which will help all individuals especially small businesses grow.
Nicole McCulloch / Payroll Administrator / PEO Canada