EI 2012

Not only will you see a little less take home pay as
a result of CPP but now CRA has announced higher rates and maximums for EI. The
following table is from the CRA announcement.

You stop deducting EI premiums when you reach the employee’s
maximum insurable earnings ($45,900 for 2012) or the maximum employee
premium for the year ($839.97 for 2012). The maximum for Quebec is $674.73
for 2012.

The annual maximum insurable earnings ($45,900 for 2012) appliesto
each job an employee holds with different employers (different
business numbers). If an employee leaves one employer during the year to start
work with another employer, the new employer also has to deduct EI premiums
without taking into account what was paid by the previous employer. This is the
case even if an employee has paid the maximum premium amount during the
previous employment. However, if your business went through a restructure or
reorganization, you should give us a call to discuss how to avoid (if possible)
this double contribution situation.

CRA will credit or refund any overpayments to employees when they
file their income tax return. There is no provision that provides a credit or
refund to the employer in such circumstances. Therefore, it is extremely
important to do payroll calculations properly. We can help you with your
payroll through PayTrak Payroll Services.