Summary
The employer EI rate is zero
Cause
- Setup, Canadian Payroll, Income Taxes, EIR codes, employer percentage field isn’t a percentage.
- Take the rate and multiply by 100.
- Example, employer percentage is 1.4 you should enter 140 in this field and not 1.4.
- 1.4 entered 0.00 amount will appear when payroll is calculated and processed.
- This field is labelled as a percent but it isn’t.
Resolution
If EIR shows zero, check that the Employer Percentage field in Setup > Canadian Payroll > Income Taxes is filled in correctly.
- If the employer rate is 1.4 per $100 of coverage, enter 140 (not 1.4).
- Also review the Calc Base tab to make sure earnings are selected.
- Save changes.
- Recalculate payroll once change has been saved.
NOTE: If using multiple EI rates (for example, EIR1, EIR2), verify each rate is correct. The system doesn’t auto-update, so update the Employer Percentage field manually as needed.