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.

To set up an EI deduction code:
  1. In the Dedn / Liab Code field, enter a number to identify the code and enter a description for the code in the Description field.
  2. In the Type section of the form, select the Deduction radio button.
  3. Set the Calculation Category drop-down to F-Federal.
  4. Select 4-Employment Insurance from the Federal Type drop-down.
  5. In the GL Account field, enter the GL account to credit for this deduction code.
  6. From the Method drop-down, select G-Rate of Gross.
  7. In the Rate / Amount #1 field, Enter the current rate.
  8. In the Limit section, select the Subject Amount radio button and enter the maximum annual insurable earnings amount in the Amount field.
  9. 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.
  10. Save the record.
Assign the deduction and liability codes to the appropriate level tax, craft/class, or employee level. For more information, see Assigning Deductions and Liabilities.