There will be a significant drop in EI premiums in 2017.
Currently, EI premiums are calculated at $1.88 for every $100 of earnings. In 2017 this rate will drop to $1.63 for ever $100 of earnings.
At the same time, Maximum Insurable Earnings will be increased to $51,300, meaning that employees will have to pay EI premiums on wages up to $51,300.
As a result of these two adjustments, the maximum employee premium will be reduced from $955.04 in 2016 to $836.19 in 2017. The amount the employer contributes will continue to be 1.4 time the amount of the employee premium.
In conjunction with this, the federal government is eliminating the Small Business Job Credit.
Business who pay less than $15,000 of employer premiums in 2015 or 2016 are entitled to a refund of 39 cents for every $100 of insurable earnings paid in that year.
Eligible businesses receive a cheque from the federal government for this amount, after filing their T4 summary and slips for the year. Cheques received after filing the 2016 T4 slips will be the last cheques received under the Small Business Job Credit program.