Employment Insurance rates for 2012

Employment Insurance 2012

Employment Insurance (EI) premiums will be increasing in 2012.  The maximum insurable earnings for 2012, applicable to all provinces and territories, will be $45,900 – up from $44,200 in 2011.

The employee’s premium rate will be 1.83% for a maximum annual premium of $839.97 ($786.76 for 2011) for the country except for Quebec.

Contributions for employers will remain at 1.4 times the amount of the employee’s premiums, for all provinces and territories.  The  maximum annual premium is $1,175.95 ($1,101.46 for 2011) in all provinces and territories except for Quebec unless the employer qualifies for a reduced rate.

EI premium rates and maximums

Year Max. Annual Insurable Earnings Rate (%) Max. Annual Employee Premium Max. Annual  Employer Premium
Federal Quebec Federal Quebec Federal Quebec
2012     $45,900 1.83 1.47 $839.97 $674.73 $1,175.96 $944.62
2011     $44,200 1.78 1.41 $786.76 $623.22 $1,101.46 $872.51
2010     $43,200 1.73 1.36 $747.36 $587.52 $1,046.30 $822.53
2009     $42,300 1.73 1.38 $731.79 $583.74 $1,024.51 $817.24
2008     $41,100 1.73 1.39 $711.03 $571.29 $995.44 $799.81
2007     $40,000 1.80 1.46 $720.00 $584.00 $1,008.00 $817.60
2006     $39,000 1.87 1.53 $729.30 $596.70 $1,021.02 $835.38

Employee or independent contractor?

 Prue v. M.N.R., 2011 TCC 9, (January 10, 2011), http://decision.tcc-cci.gc.ca/en/2011/2011tcc9/2011tcc9.html

This appeal brought before the Tax Court of Canada focussed on whether an individual was an employee or an independent contractor.  I haven’t read it line by line to come up with a detailed analysis but here is what I gleaned from the document.

1.  Document the  nature of the relationship – put it in writing, sign it.  Do the parties involved  want this to be an employee/employer relationship or that of an independent contractor.

2.  Individuals may find the idea of being an independent contractor appealing in that as a business venture they can claim expenses otherwise denied to employees.  However,  if, at some point in the future, the services of the contractor are no longer needed they might suddenly have a chance of heart.  Now they want to be an employee so they can claim Employment Insurance benefits.  To that end they can apply to the Rulings Officer at a Tax Services Office operated by Canada Revenue Agency (“CRA”) on the insurability of their employment.    This opens a whole can of worms for the employer with CRA - out of which very little of any good can result!

Employment Insurance 2011

 

Employment Insurance (EI) premiums will be increasing in 2011.  The maximum insurable earnings for 2011, applicable to all provinces and territories, will be $44,200 – up from $43,200 in 2010. The employee’s premium rate will be 1.78% for a maximum annual premium of $786.76 ($747.36 for 2010) for the country except for Quebec and 1.41% for a maximum annual premium of $623.22 for Quebec ($587.52 for 2010). Contributions for employers will remain at 1.4 times the amount of the employee’s premiums, for all provinces and territories, unless the employer qualifies for a reduced rate.

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