Canadian Tax Adviser, November 10, 2015. The CRA recently published the 2016 Employment Insurance (EI) premium rates for employees and confirmed that the federal rates will remain stable at $1.88 per $100 of insurable earnings for 2016. However, the maximum insurable earnings will increase to $50,800 (from $49,500). In 2013, Finance announced it would freeze the EI premium rate for three years. As a result, the EI premium rate will not increase to more than $1.88 in 2016. However, the maximum insurable earnings have increased each year.
As a result of the rate freeze, maximum EI contributions for 2016 will be as follows (compared to 2015):
Employment Insurance Contribution for 2015 and 2016
|Maximum Annual Insurable Earnings||$49,500.00||$50,800.00|
|Employee's Premium Rate per $100 of Insurable Earnings||1.88%||1.88%|
|Employer's Premium Rate per $100 of Insurable Earnings||2.63%||2.63%|
|Employee's Annual Maximum Contribution||$931||$955|
|Employer's Annual Maximum Contribution||$1,303||$1,337|
In Quebec, the EI premium rates for employees will decrease to $1.52 (from $1.54) per $100 in earnings for 2016. The maximum annual Quebec employee contributions will increase to $772 (up from $762) and maximum employer contributions will increase to $1,081 (up from $1,067).
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 November 10, 2015. 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