The government agency that determines the yearly maximum insurable earnings amount on which Employment Insurance premiums are calculated is:

• A. Employment and Social Development Canada
• B. Canada Revenue Agency
• C. Service Canada
• D. Department of Finance

Answer: (A)

The main idea here is which government body sets the yearly cap on insurable earnings used to calculate Employment Insurance premiums. This cap is determined by the Canada Employment Insurance Commission, which operates within the framework of Employment and Social Development Canada. Each year the Commission reviews EI program costs and economic factors and publishes the maximum insurable earnings amount (and the premium rate) for the coming year. The other agencies have different roles: the Canada Revenue Agency collects and remits EI premiums but does not set the cap; Service Canada delivers EI services to claimants but does not set the limit; the Department of Finance handles broader fiscal policy and does not determine EI parameters. So the agency responsible for the maximum insurable earnings amount is Employment and Social Development Canada.