How do you set up an employee who is EI exempt in Canadian Payroll?

Hello @jackielau53 ,

What is your version of Acumatica?  I see the following 2024 Payroll Tax Updates post that appears related to your question.  Your VAR/Partner will be able to send you the complete information and obtain an update for you if needed.

I’m not familiar with Canadian Payroll. Could the new Custom Employment Insurance Tax rate field be set to 0 for your exempt employee?

I hope this helps you.

Laura

Hi @Jackielau53,

You will need to set up an Earning Type Code and pay your EI Exempt employee(s) with that code for now.  See attachment for an example.   There will be a flag to just mark the employee exempt from EI coming.  

@Laura02 had a great suggestion, but it will only get you partially there as the Custom Employment Insurance tax rate field only impacts the Employer portion.   That field supports employers who are using the Premium reduction program.  Premium reduction program - For employers - Canada.ca

Sonia Echols

Thank you Laura & Sonia,

Agreed that the field for employer portion of the EI tax will only get me half way there and will probably not produce an accurate T4.  Sonia, do you know when Acumatica will add the flag to mark employees EI or CPP exempt?

@jackielau53 We are working now to switch tax providers.  The new provider will provide this functionality.  I estimate that will happen in the next 6 months.

Thank you Sonia.

​@Sonia Echols - Any update on the ability to have the EI Exempt Feature and when that will be rolling out?  We have at least 1 EI exempt person in all but one of our customers that we’ve rolled Canadian Payroll out to.

​@meganfriesen37 - It should become available with 26R2.

Sonia Echols