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CD 2006-033
This document has been modified. The changes are identified by a vertical line "|".
Revision (|)
December 5, 2006 (December 19, 2006)
SUBJECT: Employment Insurance (EI) and Quebec Parental Insurance Plan (QPIP) -- 2007 Taxation Year
1. PURPOSE
1.1 The purpose of this directive is to provide clients with the Employment Insurance (EI) Plan rates and the Quebec Parental Insurance Plan (QPIP) rates for the 2007 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 "Who are you? - Public Service Employee" page of the Compensation Sector Web site.
| 1.3 For additional information on EI and QPIP, refer to Compensation Directive 2005-023 dated December 1, 2005.
3. POLICY
3.1 Employment Insurance (EI)
3.1.1 EI premiums - employee and employer
EI premiums - employee working outside Quebec
Effective January 1, 2007, the employee's EI premium rate (excluding employees working in the province of Quebec), will be decreased from 1.87% to 1.80% of insurable earnings. The annual maximum insurable earnings will be increased from $39,000 to $40,000. Therefore, the maximum annual premium for the 2007 taxation year will be $720.00.
EI premiums - employee working in Quebec
Effective January 1, 2007, the EI premium rate for employees working in the province of Quebec will be decreased from 1.53% to 1.46% of insurable earnings. The annual maximum insurable earnings will be increased from $39,000 to $40,000. Therefore, the maximum annual premium for the 2007 taxation year for employees working in the province of Quebec will be $584.00.
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.
3.2 Quebec Parental Insurance Plan (QPIP)
3.2.1 QPIP premiums - employee and employer
QPIP premiums - employee
Effective January 1, 2007, the employee's QPIP premium rate will remain at 0.416% of insurable earnings. The annual maximum insurable earnings will be increased from $57,000 to $59,000. Therefore, the maximum annual premium for the 2007 taxation year will be $245.44.
QPIP premiums - employer
The employer's regular premium will remain at 0.583% of insurable earnings.
4. PROCEDURES/INSTRUCTIONS
4.1 Effective January 1, 2007, 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 1.80% of insurable earnings.
Effective January 1, 2007, the employee's EI premium rate in the RPS, (for employees working in the province of Quebec), will be automatically adjusted to 1.46% of insurable earnings.
4.2 Effective January 1, 2007, the employee's QPIP rate in the RPS, will remain at 0.416% of insurable earnings.
5. INQUIRIES
5.1 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
P. Laviolette
Brigitte Fortin
Acting Director General
Compensation Sector
Accounting, Banking and Compensation
Reference(s): CJA 9006-18
