compliance

docs/source/2_compliance.rst

@@ -92,6 +92,24 @@ deduction to be withheld from an employee’s gross pay.
 Employment Insurance (EI)
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+The CRA’s responsibility for the Employment Insurance program is associated with the
+collection of employee and employer premiums. It also makes decisions about which types of
+remuneration are considered insurable and, therefore, subject to EI premiums.
+All employers are required by law to deduct EI premiums from the insurable earnings paid to
+their employees, and remit these deductions, along with the employer’s portion, to the CRA.
+The employer’s portion is 1.4 times the employee’s portion.
+
+*Example:*
+
+Janet Frank has $20.00 in EI premiums deducted from her gross pay. Her employer, Northern
+Skies must contribute $28.00 ($20.00 x 1.4). A total of $48.00 in EI premiums must be
+remitted to the CRA.
+
+EI premiums are the second statutory deduction to be withheld from an employee’s pay.
+Employers are also required to track the employee’s insurable earnings and insurable hours
+by pay period for reporting purposes, such as completing the Record of Employment for a
+terminated or inactive employee.
+
 Income Tax
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