Are there different ways employers can pay for EI?

A look at history of premiums, suggestions for future
By Sheila Brawn
|Canadian Payroll Reporter|Last Updated: 11/03/2014

Every fall, employers and payroll professionals await the federal government’s announcement on employment insurance (EI) premium rates and maximum insurable earnings.

While this year’s proclamation that rates would be frozen through 2016 was not a surprise — it was part of the 2014 federal budget — Finance Minister Joe Oliver’s announcement of a new tax credit for small business for 2015 and 2016 was unexpected.

The credit, for businesses whose employer EI premiums are no more than $15,000 in 2015 and 2016 will be calculated as the difference between premiums paid at the legislated rate of 1.88 per cent and a reduced rate of 1.6 per cent in those two years.