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Problem:
I Have have a reduced EI Rate that I have to issue the savings back to the employees and want to do it on a per-pay-period basis. How do I setup the system.?
Solution:
Repaying You can setup the system to repay the employees at reduced EI Premium benefit1) .
Steps:
- Go to Setup > Payroll Settings > Payroll Categories.
- Click the "+" button.
- Create a benefit category
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- .
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- Add all payroll categories to the formula that are
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- subject to Employment Insurance
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- Set the formula to be 0.41001 % if your reduced EI Premium is 1.169
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- . Check the CRA if you are not sure: link
- On the "Advanced" tab, turn on the "Maximum per year" flag.
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- Set the value
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- based on employee amount
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- . Check the CRA if you are not sure: link
- Assign the category to each employee that is subject to the reduced EI Rate.
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- Click the Save button.
- Create an earning payroll category
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- .
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- Add the benefit category created above to the formula
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- Assign the category to each employee that has the benefit category on their profile.
Optional-
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Employer Savings category
- Head to Setup > Payroll settings > Payroll Categories
- Click the "+" button.
- Select the benefit category.
- Add the benefit category created above to the formula
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Assign the
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Category to Employees
Steps:
- Head to Employees > Master Paycard.
- Select the Benefits tab.
- Check off the category you have added.
** "How to calculate the % value for reduced EI Premiums"
For the employee portion of the benefit the % multiplier is calculated as follows
NB: All displayed values are for 2010, for different years check with CRA
(Employee EI Rate [1.73] * Regular EI Rate [1.4]) - (Employee EI Rate [1.73] * Reduced EI Rate [1.163])
= (1.73 * 1.4) - (1.73 * 1.163)
= (2.422) - (2.01199)
= 0.41001
** "How to calculate Maximum below"
For the maximum amount for the Reduced EI Savings you calculate it as follows
NB: All displayed values are for 2010, for different years check with CRA
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