Insurable earnings are all of those reported on your earnings statement prior to your deductions. Other types of payments from an employer that are considered insurable earnings include to name just a few :. Starting January 1, , the maximum insurable earnings and benefit rate for employment insurance are both going up. However, this is the cap on insurable earnings, which means that any money you make above this threshold will not add to the employment insurance premiums you need to pay.
Quebec has its own employment insurance plan, which also covers maternity, parental and paternity leave, called the Quebec Insurance Plan. Your employer includes your insurable earnings on your T4 automatically, and they withhold your premiums in every pay period. Unless you are self-employed, you will not actually see your employment insurance premiums in your bank account.
You therefore do not need to collect them to hand them over as this is already being done for you; why do you need to know your insurable earnings amount then? It is always wise to check your T4 and ensure that your employer has not made an error and collected too much or too little for your employment insurance premiums. You should check that your insurable earnings are correct and that your total premiums for EI are correct. Also, when you are applying for employment insurance you will need to know your total insurable earnings.
It is therefore important that you make sure every detail is correct. In addition, the WSIA provides that the insurable earnings of an individual worker for the purpose of premium calculation be limited to an annual maximum amount of insurable earnings. Excess earnings for an individual worker are any earnings that are above the annual maximum insurable earnings amount. Excess earnings are not insurable and premiums are not paid on them. Employers pay premiums on gross insurable earnings until the earnings of the worker reaches the annual maximum insurable earnings amount.
The following guidelines apply when the employer has more than one classification code, and the employer is determining insurable earnings for calculating premiums for:. Employers with an account having more than one business activity in more than one classification code are required to allocate insurable earnings amounts to each classification code. Employers must have segregated wage records in order to have multiple classification codes.
The general rules for assigning separate classification codes for multiple business activities are provided in , The Classification Structure. An employer with segregated payrolls may have workers dedicated exclusively to each classification code, or workers may perform business activities in more than one classification code.
As long as segregated wage records are maintained for each worker, insurable earnings can be assigned to multiple classification codes, see policy , The Classification Structure. The separate classification codes for non-exempt partners or executive officers in construction are distinct from other construction classification codes, and are to be used only for reporting the insurable earnings of non-exempt partners or executive officers who are eligible.
For the purpose of classifying non-exempt partners or executive officers in construction, construction work refers to any manual work of a skilled or unskilled nature, the operation of equipment or machinery, or the direct on-site supervision of workers.
Periodic on-site visits are permitted, provided that the partner or executive officer is not performing construction work on the site. For more information about coverage in construction, see , Expanded Compulsory Coverage in Construction. The segregated wage records must clearly show the earnings based on labour time spent in each business activity.
For employers whose accounts have only one classification code, all earnings are direct earnings. Common earnings are insurable earnings from an ancillary operation or optional insurance amounts that are not segregated and cannot be directly assigned to a classification code.
For example, the employer may have workers in areas such as human resources, accounting or administration, whose work duties support business activities in two or more classification codes. If the employer cannot segregate the earnings of these workers by assigning labour time spent in each business activity and classification code, these earnings are considered common earnings.
Common earnings must be prorated over the direct earnings of the relevant classification codes. An employer carries on four different business activities and is classified in four different classification codes.
Each pro-rated portion is then assigned to the appropriate classification code. Step 1 : Employer determines direct earnings and percentage of total direct earnings from all workers for each classification code. Step 2 : Apply the percentage of total direct earnings to the common earnings in order to determine the proportion of common earnings to be assigned to each classification code.
Step 3 : Add up the direct and pro-rated common earnings for each classification code. The employer should contact the WSIB for instructions on applying insurable earnings to multiple classification codes if the circumstances fall outside those described in this section. With the exception of those items listed as non-insurable below, all other earnings are considered insurable for WSIB purposes. This policy applies to decisions with respect to the calculation of premiums based on earnings earned from January 1, This document was previously published as: dated April 1, dated January 2, dated November 3, dated October 12, dated July 19, updated for document number cross-references only dated September Workplace Safety and Insurance Act , , as amended Section 2 1 , Operational Policy Manual.
Determining Insurable Earnings. Application Date. April 23, Employer Accounts. Document Number. Purpose The purpose of this policy is to provide guidelines on determining the insurable earnings of workers, and contractors covered as workers, through their principal's WSIB account. Guidelines For information on insurable earnings in the construction industry, see , Insurable Earnings - Construction. Definitions Principal - A person or business entity awarding or letting a contract to a contractor or sub-contractor.
What are earnings? What are insurable earnings? Insurable earnings include earnings derived from methods of payment such as: pay by hourly rate piecework salary commission vacation pay room and board bonuses, and the value of most other allowances and taxable benefits. For a non-exhaustive list of insurable earnings see Appendix I.
Determining the status of contractors If a contractor does not employ workers and is: not registered as an employer with the WSIB not an independent operator with a WSIB independent operator identification number for the contract in question, and not considered a worker by the principal to whom he or she has contracted, then the contractor and the principal are required to complete the appropriate industry-specific, or general questionnaire used by the WSIB to determine whether the person is a worker or an independent operator for WSIB purposes.
Retroactive liability for an unregistered contractor under s. Other insurable earnings calculations For information about insurable earnings: in the construction industry, see , Insurable Earnings - Construction in the logging industry, see , Insurable Earnings - Logging in the trucking, courier, and taxi industries, see , Insurable Earnings - Drivers in the Transportation Industry for municipal volunteer fire brigades and for volunteer ambulance brigades, see , Insurable Earnings - Volunteer Forces , and for training participants, see , Coverage for Unpaid Trainees.
To calculate the portion of insurable earnings and the resulting premiums payable to the Ontario WSIB when: workers of an Ontario-based employer work temporarily in another Canadian jurisdiction, or workers from another Canadian jurisdiction work temporarily in Ontario, see , Insurable Earnings - Interjurisdictional Agreement.
Landscaping contracts For the purpose of this policy, the table below applies in two situations. Unregistered contractor under s.
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