CD 2011-028
Subject: Employment Insurance (EI) and Quebec Parental Insurance Plan (QPIP) - 2012 Taxation Year
November 30, 2011
1. Purpose
1.1. The purpose of this directive is to provide clients with the Employment Insurance (EI) Plan and the Quebec Parental Insurance Plan (QPIP) rates for the 2012 taxation year.
1.2. A notice of information to employees concerning the above has been included with this Compensation Directive and will also be posted in the "Public Service Employee" page of the Compensation Sector Web site.
1.3. For additional information on EI and QPIP, refer to ARCHIVED Compensation Directive 2005-023, dated December 1, 2005.
2. Policy
2.1. Employment Insurance (EI)
2.1.2. EI premiums - employee and employer
EI premiums - employee working outside Quebec
Effective January 1, 2012, the employee's EI premium rate (excluding employees working in the province of Quebec) will be increased from 1.78% to 1.83% of insurable earnings. The annual maximum insurable earnings will be increased from $44,200 to $45,900. Therefore, the maximum annual premium for the 2012 taxation year will be $839.97.
EI premiums - employee working in Quebec
Effective January 1, 2012, the EI premium rate for employees working in the province of Quebec will be increased from 1.41% to 1.47% of insurable earnings. The annual maximum insurable earnings will be increased from $44,200 to $45,900. Therefore, the maximum annual premium for the 2012 taxation year for employees working in the province of Quebec will be $674.73.
EI premiums - employer outside Quebec
The employer's regular premium remains equal to 1.4 times the total of the employee's premium.
EI premiums - employer in Quebec
The employer's regular premium remains equal to 1.4 times the total of the employee's premium.
2.2. Quebec Parental Insurance Plan (QPIP)
2.2.1. QPIP premiums - employee and employer
QPIP premiums – employee
Effective January 1, 2012, the employee's QPIP premium rate will be increased from 0.537% to 0.559% of insurable earnings. The annual maximum insurable earnings will be increased from $64,000 to $66,000. Therefore, the maximum annual premium for the 2012 taxation year will be $368.94.
QPIP premiums – employer
The employer's regular premium will be increased from 0.752% to 0.782% of insurable earnings.
3. Procedures and Instructions
3.1. Effective January 1, 2012, the employee's EI premium rate in the Regional Pay System (RPS) (excluding employees working in the province of Quebec) will be automatically adjusted to 1.83% of insurable earnings.
Effective January 1, 2012, the employee's EI premium rate in the RPS for employees working in the province of Quebec will be automatically adjusted to 1.47% of insurable earnings.
3.2. Effective January 1, 2012, the employee's QPIP rate in the RPS will be automatically adjusted to 0.559% of insurable earnings.
4. Inquiries
4.1. Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.
Original Signed by
Carrie E. Roussin
Carrie E. Roussin
Director General
Compensation Sector
Accounting, Banking and Compensation
Reference(s): CJA 9006-18
Information Notice to Employees
Employment Insurance (EI) and Quebec Parental Insurance Plan (QPIP) - 2012 Taxation year
The purpose of this notice is to provide you with information concerning the Employment Insurance (EI) Plan rates and the Quebec Parental Insurance Plan (QPIP) rates for the 2012 taxation year.
If you do not work in the province of Quebec, your EI premium rate will be increased from 1.78% to 1.83% of insurable earnings for the 2012 taxation year. The annual maximum insurable earnings will increase from $44,200 to $45,900. Therefore, your maximum annual premium for the 2012 taxation year will be $839.97.
If you work in the province of Quebec, your EI premium rate will be increased from 1.41% to 1.47% of insurable earnings starting with the first pay in January 2012. The annual maximum insurable earnings will increase from $44,200 to $45,900. Therefore, your maximum annual premium for the 2012 taxation year will be $674.73.
On January 1, 2012, your QPIP premium rate will be increased from 0.537% to 0.559% of insurable earnings. The annual maximum insurable earnings will increase from $64,000 to $66,000. Therefore, your maximum annual premium for the 2012 taxation year will be $368.94.
Should you reach the maximum annual premium for either insurance plan in 2012, you will see an increase in the amount of your net pay, as deductions for these will no longer be withheld.
Any request for information regarding this information notice should be addressed to your compensation advisor.
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