How to add a reduced EI rate to your payroll settings

If your business qualifies for a reduced Employment Insurance (EI) rate, you can enter it directly into your account so that payroll calculations reflect the approved lower employer contribution rate.

This program is available to employers that offer a short-term disability plan meeting federal eligibility criteria. If approved by Service Canada, you’ll receive a reduced employer EI rate that must be added manually.

1. Go to EI rate settings

  • From the main menu, go to Settings

  • Click the EI rates tab

2. Add the new EI reduction rate

  • Click + Add EI reduction rate
    A pop-up window will appear

3. Complete the rate details

Field

Description

EI reduction rate

Enter the percentage provided by Service Canada

Effective from

Select the start date for the reduced rate

Effective to (optional)

Add an end date if the rate is temporary

Notes (optional)

Include any internal references or context for your team

4. Save the changes

  • Click Save to apply the rate to your payroll calculations

Additional notes

  • You can only have one active rate at a time. If you receive a new rate, set an Effective to date on the old rate and add a new entry.

  • This change affects employer EI contributions only—employee rates remain standard.