Canada-How to Exempt earnings from Employment Insurance

Exempting EI is necessary in only a few instances and can be done by following these steps.
From Human Resources>File>Percentage Tax Rates
For CPP set the Gross to use to Gross.
For EI set the Gross to use to CPP.

When preparing payroll mark the earnings with CPP exempt.

CPP remains in effect and EI is not deducted.

 

 

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