Learn How to Calculate Employment Insurance Premiums

by Thom Tracy

0 min read

As an employer, you have to submit Employment Insurance premiums on behalf of your employees. As of 2017, the EI rate is 1.63 percent. To calculate how much to withhold from your employee’s paycheque, multiply their payment by 0.0163. For example, if your employee’s pay is $1,000, his EI premium is $16.30.

You also have to remit a payment to the Canada Revenue Agency on behalf of your employee. To calculate your payment, multiply the employee’s EI premium by 1.4. On a $1,000 paycheque, that makes your payment $22.82.

As of 2017, you only have to remit EI premiums on the first $51,300 of income. If your employee earns over that threshold, you don’t have to withhold or pay EI premiums on the excess amounts.

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