When do you deduct EI
no age limit
what do you deduct ei from
salary, wages, bonuses, commissions or other remuneration (including payroll advance or earnings) wages in leiu of termination notice, most cash taxable benefits and allowances, employer contribution to an employee’s RRSp (except where employee cannot withdraw amounts from group RRSP until they retire or stop being employed or HBP, or LLP)
what can you do if you are not sure if you should deduct EI?
request CPP/EI Ruling
fill out a CPT1
if you deduct EI PRemiums and don’t think you should’ve what can you do?
- can ask fo a refund
- usually complete a CPT1 first
What is the employer amount of EI
1.4 x the amount you deduct for EI from the employee
What is the maximum annual insurable earnings for 2014
48,600
What is the EI premium rate?
1.88%
Maximum Premium for 2014
$913.68 (48,600 x 1.88%)
Overpayments
will be refunded to employees when they file their return
Overpayments (due to new employee during the year)
there is no provision for EI overpayment to be credited due to new employee for EI
What do you do if you have an EI overpayment during the year
- reimburse the employee the amount deducted in error
- adjust your payroll records
- this results in a credit on your payroll program account equal to the employee and employer portion
- reduce a future remittance in the SAME calendar year by that amount
- do not include reimbursement amount on T4
What if you canèt refund an EI overpayment in the same year
- show the total EI preimums deducted
- and the correct insurable earnings on T4slip
- if you report the meployeeès overpayment on T4 slip, you can ask for refund by completing a PD24 (must be done within 3 years)
Recovering EI Premimums; Underdeducted EI Premimums
- remit te balance due (employer and employee portion)
- recover the amount from the employee but it CANNOT be more than 12 months
- you cannot adjust employees income tax deduction to cover the EI Premium shortfall
