Plain meaning
Payroll premiums used to fund Employment Insurance benefits.
Also called
Employment Insurance premium
EI premium
Key points
- Employees pay EI premiums on insurable earnings up to an annual maximum.
- Employers generally withhold employee premiums and pay an employer portion with payroll remittances.
- Self-employed individuals may opt into certain EI special benefits, but the rules differ from regular employment coverage.
- Annual EI rates and maximum insurable earnings are updated periodically and affect payroll costs.
Why it comes up
EI premium rates and maximum insurable earnings affect paycheques, employer payroll costs, and budget announcements about labour-market supports.