The 2026 Employment Insurance (EI) contribution rate for Ontario trades shop employees is set at $1.63 per $100 of insurable earnings, with the maximum insurable earnings ceiling raised to $68,900. This means payroll deductions for each employee will be calculated as $1.63 for every $100 earned, but stop once annual earnings reach $68,900. Shop owners must adjust their payroll systems to reflect this rate change and ensure deductions are tracked accurately.
You must calculate EI deductions based on each pay period’s earnings, stopping once the annual maximum of $1,123.07 per employee is reached. This requires tracking cumulative earnings to avoid over-deductions or missed remittances. Unremitted source deductions carry personal liability for directors and CRA penalties, so verifying calculations is critical. The system allows you to see exactly how every number is calculated and trace every deduction to confirm compliance with CRA rules.