Ontario employers must adjust 2026 payroll deductions using a $68,900 maximum insurable earnings threshold and a $1.63 per $100 premium rate. This means for any employee earning over $68,900 annually, you stop deducting EI premiums once the annual total reaches $1,123.07. Deductions must be calculated at $1.63 for every $100 earned until this cap is met.
If deductions exceed $1,123.07 per employee, you risk CRA penalties and personal liability as a director for unremitted source deductions. The government requires employers to track these calculations precisely, as the maximum annual premium is fixed at $1,123.07. You can verify each deduction against the official rate without relying on automated systems.