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2020 Employment Insurance (EI) Maximum Insurable Earnings
The Employment Insurance (EI) premiums for 2020 has been decreased to 1.58% for employees, and 2.212% (1.4 times of 1.58%) for employers. Contributors who earn more than $54,200 in 2020 are not required or permitted to make additional contributions to EI. The decrease in premium rate, in 2020, will save a maximum of $3.86 for an employee and $5.41 (per employee) for an employer.
Below is the comparison from 2018 to 2020:
|Max. Insurable Earnings||$54,200||$53,100||$51,700|
|Max. employer contribution||$1,198.90||$1,204.31||$1,201.51|
|Max. employee contribution||$856.36||$860.22||$858.22|
Please note that this applies to each job. For example, during the year, if you switch employers, each employer will deduct the EI premium without considering the amount of EI premiums paid with the previous employer. The employee will receive the refund of any over-payments when income tax and benefit return is filed with the Canada Revenue Agency.
(This posting is for personal educational purposes only. Please consult your tax advisor for your specific situation).