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EI premiums: Maximum increase on the table
September 29, 2010
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EI UPDATE – Breaking News
The Minister of Finance has heard us and is taking steps to limit EI premium increases in 2011. EI premiums would have increased to the maximum legislated limit of $0.21/$100 of payroll for employers without government intervention. Instead, premiums will increase $0.07/$100 of payroll.
CRFA warned government that jobs would be lost and measures to stimulate economic recovery would be for naught, if payroll taxes were increased by that magnitude. Even a $0.07 premium increase is a $100-million hit on foodservice operators.
The government introduced other measures to limit EI increases by announcing the maximum increase permitted by statute will be reduced from $0.21/$100 of payroll to $0.14/$100 of payroll. This announcement needs to be accompanied by a commitment from government to contribute to the EI fund from General Revenue, to avoid further increases in the EI fund deficit compounding future employee and employer obligations.
The government also announced it would undertake consultations on how the EI rate-setting mechanism can be improved to ensure more stable, predictable rates going forward.
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EI premiums: Maximum increase on the table
The new Canada Employment Insurance Financing Board (CEIFB) is recommending the maximum increase to employment insurance (EI) premiums allowable by law. On Nov. 14, CEIFB is expected to officially recommend rates be raised by 15 cents for employees and 21 cents for employers. Cabinet has until Nov. 30 to accept, alter or reject the recommendation.
Currently, employees pay $1.73 and employers pay $2.42 (per $100 of insurable earnings). These rates have been frozen since 2009 as part of the government’s stimulus package.
CRFA is lobbying the federal government to control EI costs by pushing it to freeze premiums or at least keep them to a manageable level by directly contributing to the new EI account.
However, CRFA needs your help. Join us in telling Minister Flaherty to not raise your payroll taxes by printing, signing and faxing this petition.
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