Unit 7 employment insurance Flashcards
Describe Employment insurance
- provides temporary financial assistance to unemployed Canadians who lost their job through not fault of their own, while they look for a new one or upgrade their skills
- also for sick, pregnant or caring for a newborn or adopted child, as well as those who have to care for a family member who is severely ill with significant risk of death or who must care for or support a critically injured or ill child
What are the 6 types of benefits
- employment insurance regular benefit
- EI maternity and parental benefits
- EI sickness benefits
- EI Compassionate care benefits
- EI benefits for parents of critically ill children
- EI fishing benefits
Describe EI regular benefits
for people who lost their job through no fault of their own
- available for , are able to work but can’t find a job
Describe EI Maternity and parental benefits
- people who are pregnant, recently given birth, adopting a child or caring for a new born
Describe EI sickness benefits
- unable to work because of sickness, injury or quarantine
Describe EI Compassionate care benefits
- people who have to be away form work temporarily to provide care or support to a family member who is gravely ill with a significant risk of death
Describe EI for parents of critically ill children
- parents who take leave from work to provide care or support their critically ill or injured child
Describe EI fishing benefits
- support for qualifying, self-employed fishers who are actively seeking work
What are the employer requirements with regards to EI
- deduct EI premiums from employees insurable earnings
- Remit EI Deductions (employer and employee)
- Track insurable earnings and insurable hours by pay period for each employee
- Complete ROE when required using the above info
What is Service Canada Responsibilities with regards to EI
- Developing SIN operational policies and directives
- Administering the registration of SIN applicants and maintaining the register
- Handling requests for access to SIN info
- Developing and implementing investigation and control measures to detect and deter abuse of SIN
- working on communication strategies with the business community and general public
- reviewing legislation related to SIN to ensure proper provisions to administer SIN
Employment and Social Development what are their role in EI
- data verification reported by employers on ROE
- entitlement, determination and payment of benefits
- establishment of the annual EI rate (along with the Canadian EI commission)
- establishment of the annual maximum insurable earnings
- administration of provisions for wage-loss plans
What are CRA`s responsibilities with regards to EI
- determination of insurable employment
- Determination of insurable earnings form insurable employment
- The deduction and collection of premiums
- the keeping of books and records and their disposal
- the raising of assessments
- the determination of questions regarding payment of premiums or assessments
What is the penalty of you fail to remit
- 3% 1 -3 days late
- 5% 4 - 5 days late
- 7% 6 - 7
- 10 % more than 7 days or if no amount is remitted
generally penalties only apply to the amount you failed to remit over $500,
- however it will apply to the whole amount if you knowingly didn’t remit or under circumstances of gross negligence
What is the annual EI maximum
48,600
What is the EI Rate for employees
1.88%
What is the annual maximum employee premium
$913.68
What is the maximum employer portion per employee
913.68 x 1.4 = 1,279.15
Employment not insurable for EI
- casual employment for a purpose other than the employer`s usual business
- employment where the employer and the employee are not dealing with each other at arms length
- employment that constitutes an exchange of work or service
- employment of a person who controls more than 40% of the corporations shares
- employment in agriculture where the person receives no cash or works less than 7 days during the year
- employment of a person in a rescue operation
- employment by a gov. body as an election worker for less than 35 hrs during the year
- employment of a member of a religious order
Can employees who earn $2,000 or less able to claim a refund for EI preimumsÉ
it is possible when they file their tax return
What payments are not subject to EI
- payments made under a supplementary unemployment benefit plan (SUB)
- all benefits except :
- value of board and lodging if paid cash in the period
- all employer contributions to an employee
snon-locked in ` RRSP
- a retiring allowance or severance pay
- directors fees
- a supplement for maternity / paternal benefits
- an advance or loan for workers comp claims as long as it is paid back
- a supplement for workers comp benefits
8 a supplement for wage-loss replacement plans
What are insurable hours for hr pay
- each hour physically worked and paid during insurable employment
- regardless if it is overtime
- hrs are not rounded by reported as worked
What are insurable hours for salary employees
number of hours is the expected hrs of work
- regardless of actual hours worked
What are insurable hours for piece work
employer and employee must agree on a reasonable amount
or
insurable earnings will be divided by minimum wage with a max of 7hrs/day and 35 hrs per week
what are insurable hours for statutory holidays
if you do not work = no insurable hours
however, insurable earnings still occur
