Question

Benji works 30 hours per week and has insurable earnings of $1,525.00 for the week. His year-to-date (YTD) insurable earnings are $54,900.00 (36 weeks in the current year) and his year-to-date EI premiums deducted are $867.60. If this is the case what will be his EI premium in the next pay ?

Answer 1

To determine Benji's next EI premium, we need the annual maximum insurable amount and the EI rate for the year in question. With the 2022 EI rate, unless the maximum has been reached, the premium on $1,525.00 would be approximately $24.10. If the maximum has been reached, there would be no additional premium due.

Step-by-step explanation:

To calculate Benji's next EI (Employment Insurance) premium, we'll need to understand the formula for EI contributions in Canada. Since the question only provides Benji's earnings and doesn't specify the EI premium rate, we'll follow the standard in 2022, which was 1.58% for employees (up to a maximum yearly contribution amount). Benji's current YTD insurable earnings are $54,900.00, which is likely over the EI maximum insurable earnings, so his premium deductions on additional earnings may be nil. However, without the specific annual maximum or the rate for the year in question, we cannot provide an exact amount for the next premium.

Using the 2022 rate as a reference, if Benji has not yet reached the maximum insurable earning threshold, his EI premium for the next pay on $1,525.00 would be approximately $24.10 (1.58% of $1,525). If the maximum has been reached, the premium may be zero. For the most accurate figure, it's advisable to check the current rates and maximum contribution ceilings.