EI, WC, CCB Flashcards
Who are the people that can collect EI benefits?
People who are unemployed
Are on maternity or paternal leave
Off work due to sickness (disability)
Under EI, which individuals do not have an insurable employment?
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
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?
Parental
Sickness
Compassionate care benefits
What is the maximum insurable earnings under EI and the maximum employee and employer premiums?
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
What is the reduction in earning to qualify to receive EI for sickness or injury benefits?
More than 40% reduction in benefits
What is the qualifying period for EI benefits?
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
What is the maximum EI sickness benefit?
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
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?
$500 X 0.55 = $275/week of EI benefits
What is the waiting period for EI benefits?
14 days or 2 weeks
Benefits begin on the 15th day.
What are the maximum benefit period for EI benefits?
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
What types of EI benefits are exempt from the repayment provision?
Sickness EI benefits
Are EI benefits taxable?
Yes, they’re included in the income in the year of receipt
What are the benefits that EI is a second payer to with respect to disability benefits?
CPP
Worker’s compensation (WC)
Employer’s group STD short term disability plan
Each $ from these plans reduce $1 from EI
Which type of disability benefit is EI not a second payer to?
Individual disability insurance
What is the Canada child benefit (CCB)?
A benefit the government provided to help families with ever increasing costs of raising children
Are CCB payments tax free?
Yes. Payments are made every month.
What are the maximum annual benefits per child for the CCB?
Annual maximum benefit for child under 6: $6,765
Annual maximum benefit for child ages 6 - 17:
$5,708
What is a worker’s compensation (WC)?
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
Who pays the premiums for WC?
Employers. Employees do not contribute to the plan.
What is the maximum WC benefit?
Between 75% of net earnings and 90% of gross earnings
What is the tax treatment of premiums for WC?
Employers pay the premiums and there premiums are tax deductible to the business.
The premiums are not a taxable benefit to the employee
What is the tax treatment for WC benefits?
WC disability benefits must be included in income in year of receipt but there is an offsetting deduction
Result is benefits are tax free.
Is there a waiting period to receive WC benefits?
No. Benefits begin the day after the injury and employer pays wages for the day of the accident.
If there is a permanent disability under WC, what is the maximum benefit period?
Depends on the province but it could be for lifetime or till age 65 when an annuity or retirement pension is payable.
What is the 2021 EI premium rate for employees?
1.58%
What is the maximum insurable earnings for 2021?
$56,300
Calculate the maximum EI employee premium using the maximum insurable earnings and the EI premium rate for 2021.
1.58% X $56,300 = $889.54 is the maximum employee premium
What is the maximum employer EI premium for 2021?
2.12% X 56,300 = $1245.36
