Which of the following is not subject to Employment Insurance premiums?

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Prepare for the Canadian Payroll Compliance Legislation Exam. Study with multiple choice questions, each accompanied by hints and explanations. Get ready for your certification exam!

Multiple Choice

Which of the following is not subject to Employment Insurance premiums?

Explanation:
Not all earnings are treated the same for Employment Insurance premiums. Only insurable earnings are subject to EI premiums, up to the annual maximum. Certain payments are not insurable, and that distinction is what the question tests. Retiring allowances are not considered insurable earnings for EI purposes, so they are not subject to EI premiums. Regular wages, vacation pay, and overtime pay are generally insurable and do carry EI premiums up to the limit. So, the item not subject to EI premiums is the retiring allowance.

Not all earnings are treated the same for Employment Insurance premiums. Only insurable earnings are subject to EI premiums, up to the annual maximum. Certain payments are not insurable, and that distinction is what the question tests.

Retiring allowances are not considered insurable earnings for EI purposes, so they are not subject to EI premiums. Regular wages, vacation pay, and overtime pay are generally insurable and do carry EI premiums up to the limit.

So, the item not subject to EI premiums is the retiring allowance.

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