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Finance Announces Three-Year EI Premium Rate Freeze 

Canadian Tax Adviser

 

September 10, 2013

 

Finance Minister Jim Flaherty announced on September 9, 2013 that the Employment Insurance (EI) premium rate for employees will be frozen for three years. Accordingly, the EI premium rate for employees will remain at its current level of $1.88 per $100 of insurable earnings for 2014. The maximum insurable earnings for 2014 will increase to $48,600 (from $47,400). For 2015 and 2016, Finance announced that the EI premium rate will be set no higher than $1.88.

EI contribution rates - 2014
As a result of the change, maximum EI contributions for 2014 will be as follows (compared to 2013):

 

 

Lower EI rate for Quebec
For Quebec, the EI premium rates will increase in 2014 to $1.53 (from $1.52) per $100 in earnings for employees. These rates will result in 2014 maximum annual Quebec employee contributions of $744 (up from $720) and maximum employer contributions of $1,041 (up from $1,009). These rates are lower than the federal rates because Quebec finances its own parental insurance benefits.

 

For more information, contact your KPMG adviser.

 

 

 

 

Information is current to September 10, 2013. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500

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