Employment Insurance (EI) is a government program in Canada that provides temporary financial support to eligible individuals who have lost their job through no fault of their own, such as due to layoffs, seasonal work ending, or illness. It also covers situations like maternity and parental leave, sickness benefits, caregiving leave, and compassionate care.

Both employers and employees contribute to the EI program through payroll deductions. The employer deducts a set percentage from each employee’s pay and also contributes 1.4 times that amount. These contributions are remitted to the Canada Revenue Agency (CRA) as part of regular payroll remittances.

To qualify for EI benefits, individuals must meet specific criteria, such as having worked a certain number of insurable hours within the past 52 weeks and actively seeking employment if they are able to work. The amount and duration of benefits depend on factors like the unemployment rate in the claimant’s region and their earnings history.

For employers, properly calculating and remitting EI premiums is crucial for compliance and to ensure that employees are protected. For employees, EI offers vital income support during life transitions, helping them manage financially while they search for new work or care for their families.