Understand your responsibility as an employer to deduct and remit both employer and employee EI contributions
In Canada, Employment Insurance (EI) deductions are payroll contributions that fund the EI program, which provides temporary financial assistance to unemployed individuals, as well as benefits for those on maternity, parental, or sick leave. Both the employer and employee are required to contribute. These deductions are designed to support workers during periods of unemployment or when they are unable to work due to certain life events.
Note: Quebec has a different E.I premium than all other Canadian jurisdictions. Click here to view Federal & Quebec EI premium rates & maximums. While the rate for Quebec EI is different, this source deduction is remitted to the CRA directly, NOT to Revenu Quebec.
Click here for more information on Employment Insurance premiums
Reduced EI Benefits
If you're an employer offering a short-term disability plan that meets specific criteria, you might qualify for a reduced rate on your Employment Insurance (EI) premiums. Instead of paying the standard rate of 1.4 times the employees' EI premiums, you could benefit from a lower premium rate.
Click here to access information about the CRA's EI Premium Reduction Program