Question

Jupiter Textiles, located in BC, makes a bi-weekly salary payment of $ 2,150 and an overtime payment of $200 to David on the same cheque. Calculate David’s gross insurable income and EI per pay period.                                                                                    

Answer 1

Both the regular salary and overtime payment satisfies insurable income criteria.

Insurable income criteria:

• paid in cash
• paid by the person's employer
• received and enjoyed by the person in respect of that employment

Gross insurable income = $2,150 + $200 = $2,350

Gross insurable income for the year= ($2,150 x 26 weeks) + $200 = $56,100

But Insurable income limited to $54,200 in 2020.

EI premium = $54,200 x 1.56% = 856.36 per annum.

EI premium per day = 856.36 per annum. / 356 days = $2.41 per day