Set up an EI Deduction Code: Canada
Create a deduction code to have the system properly calculate Employment Insurance.
The following instructions detail how to set up an EI deduction code. For a more general description of creating deduction and liability codes, please see Creating Deduction and Liability Codes.
- In the Dedn / Liab Code field, enter a number to identify the code and enter a description for the code in the Description field.
- In the Type section of the form, select the Deduction radio button.
- Set the Calculation Category drop-down to F-Federal.
- Select 4-Employment Insurance from the Federal Type drop-down.
- In the GL Account field, enter the GL account to credit for this deduction code.
- From the Method drop-down, select G-Rate of Gross.
- In the Rate / Amount #1 field, Enter the current rate.
- In the Limit section, select the Subject Amount radio button and enter the maximum annual insurable earnings amount in the Amount field.
- Set up automatic AP updates for the code, making sure to select the Separate AP Transaction per Employee check box. For more information, see Setting Automatic Accounts Payable Updates for D/L Codes.
- Save the record.