Employers stand to save $82 per employee
With a healthy economy and a surplus to play with, the federal government has decided to cut contribution rates to employment insurance, saving employers as much as $82 per employee in 2001.
Employers will continue to pay 1.4 times the employee rate, but the employee rate will drop $0.15 from $2.40 to $2.25.
In other words, employers will be paying $3.15 per $100 of insurable employee earnings down from $3.36 in 2000, with the maximum insurable income remaining the same at $39,000.
The reduction will also save employees up to $59 next year and all told, the cuts represent a savings of $1.2 billion for both employers and employees. The reduction continues a steady decline since 1994 when employers were paying $4.30 per $100 of insurable earnings.
Rate details
The rate for employers without government-approved reduced premium rates will be 1.4 per cent (1.4 times the employee rate).
The 2001 reduced EI rates for employers with a government-approved wage-loss replacement plan will be:
Category 1 – 1.302
Category 2 – 1.267
Category 3 – 1.271
Category 4 – 1.258
Employers will continue to pay 1.4 times the employee rate, but the employee rate will drop $0.15 from $2.40 to $2.25.
In other words, employers will be paying $3.15 per $100 of insurable employee earnings down from $3.36 in 2000, with the maximum insurable income remaining the same at $39,000.
The reduction will also save employees up to $59 next year and all told, the cuts represent a savings of $1.2 billion for both employers and employees. The reduction continues a steady decline since 1994 when employers were paying $4.30 per $100 of insurable earnings.
Rate details
The rate for employers without government-approved reduced premium rates will be 1.4 per cent (1.4 times the employee rate).
The 2001 reduced EI rates for employers with a government-approved wage-loss replacement plan will be:
Category 1 – 1.302
Category 2 – 1.267
Category 3 – 1.271
Category 4 – 1.258
