EI, WC, CCB

Question 1

Who are the people that can collect EI benefits?

Answer 1

People who are unemployed

Are on maternity or paternal leave

Off work due to sickness (disability)

Question 2

Under EI, which individuals do not have an insurable employment?

Answer 2

Self employed individuals eg sole proprietor or partner

Individuals who own more than 40% of voting shares of a corporation personally or through a holding company

Question 3

Under special circumstances, what type of EI benefits can self employed individuals and individuals who own more that 40% voting shares of a corporation be eligible for?

Answer 3

Parental
Sickness
Compassionate care benefits

Question 4

What is the maximum insurable earnings under EI and the maximum employee and employer premiums?

Answer 4

EI

Maximum insurable earnings: $56,300

Maximum employee premium: 1.58% X $56,300 = $889.54

Maximum employee premium: 2.12% X $56,300 = $1,245.36

Question 5

What is the reduction in earning to qualify to receive EI for sickness or injury benefits?

Answer 5

More than 40% reduction in benefits

Question 6

What is the qualifying period for EI benefits?

Answer 6

It is the period of insurable employment that is lesser of:

52 week period immediately before the claim start date

Period since the start of the last claim

Question 7

What is the maximum EI sickness benefit?

Answer 7

Maximum EI sickness benefit is based on 55% of the claimant’s average weekly earnings up to $595/week.

$56,000 X 0.55 / 52 weeks = $595/week

Question 8

Claude earns an average of $500/week as a labourer. If he stops working due to injury, what is the EI benefit he’s entitled to?

Answer 8

$500 X 0.55 = $275/week of EI benefits

Question 9

What is the waiting period for EI benefits?

Answer 9

14 days or 2 weeks

Benefits begin on the 15th day.

Question 10

What are the maximum benefit period for EI benefits?

Answer 10

Sickness benefits - 15 weeks

Parental benefits - 35 weeks

But parental and sickness and maternity leave cannot exceed 50 weeks

Benefits are paid biweekly.

EI extended parental benefits can be paid for a maximum of 61 weeks.

Maternity benefits - 15 weeks

Question 11

What types of EI benefits are exempt from the repayment provision?

Answer 11

Sickness EI benefits

Question 12

Are EI benefits taxable?

Answer 12

Yes, they’re included in the income in the year of receipt

Question 13

What are the benefits that EI is a second payer to with respect to disability benefits?

Answer 13

CPP
Worker’s compensation (WC)
Employer’s group STD short term disability plan

Each $ from these plans reduce $1 from EI

Question 14

Which type of disability benefit is EI not a second payer to?

Answer 14

Individual disability insurance

Question 15

What is the Canada child benefit (CCB)?

Answer 15

A benefit the government provided to help families with ever increasing costs of raising children

Question 16

Are CCB payments tax free?

Answer 16

Yes. Payments are made every month.

Question 17

What are the maximum annual benefits per child for the CCB?

Answer 17

Annual maximum benefit for child under 6: $6,765

Annual maximum benefit for child ages 6 - 17:
$5,708

Question 18

What is a worker’s compensation (WC)?

Answer 18

A series of separate disability insurance programs sponsored by various provincial and territorial governments

It’s administered by the provincial workers’ compensation boards

Established as no fault insurance where it removes an individual’s right to undertake legal action against an employer relating to disability

Question 19

Who pays the premiums for WC?

Answer 19

Employers. Employees do not contribute to the plan.

Question 20

What is the maximum WC benefit?

Answer 20

Between 75% of net earnings and 90% of gross earnings

Question 21

What is the tax treatment of premiums for WC?

Answer 21

Employers pay the premiums and there premiums are tax deductible to the business.

The premiums are not a taxable benefit to the employee

Question 22

What is the tax treatment for WC benefits?

Answer 22

WC disability benefits must be included in income in year of receipt but there is an offsetting deduction

Result is benefits are tax free.

Question 23

Is there a waiting period to receive WC benefits?

Answer 23

No. Benefits begin the day after the injury and employer pays wages for the day of the accident.

Question 24

If there is a permanent disability under WC, what is the maximum benefit period?

Answer 24

Depends on the province but it could be for lifetime or till age 65 when an annuity or retirement pension is payable.

Question 25

What is the 2021 EI premium rate for employees?

Answer 25

1.58%

Question 26

What is the maximum insurable earnings for 2021?

Answer 26

$56,300

Question 27

Calculate the maximum EI employee premium using the maximum insurable earnings and the EI premium rate for 2021.

Answer 27

1.58% X $56,300 = $889.54 is the maximum employee premium

Question 28

What is the maximum employer EI premium for 2021?

Answer 28

2.12% X 56,300 = $1245.36