Morneau - Employment Insurance

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  1. Regular benefits - exceptions
    • claimant refusing or failing to apply for suitable employment
    • claimant failing to take a training course without good cause
    • individuals who leave jobs voluntarily without just cause, or due to misconduct
    • if voluntary separation resulting in someone else keeping their job, eligible
  2. Qualifying period
    • shorter of 52-week period immediately before start date of a claim and period since the start of a previous claim, if during the 52-week period
    • only insurable hours within the qualifying period are used (need between 420 and 700)
  3. Duration of benefits
    • reflects number of hours of insurable employment and rate of unemployment in region
    • maximum benefit payment period for regular benefits is 45 weeks
  4. Special benefits
    • maternity benefits: payable to birth or surrogate mother for up to 15 weeks
    • parental benefits: payable to biological or adoptive parents for up to 52 weeks
    • sickness benefit: up to 15 weeks for a person unable to work because of sickness
    • compassionate care: up to 6 weeks to care for gravely ill family member at the risk of dying within 26 weeks, when salary decrease is at least 40%
  5. Waiting period
    • starts Sunday of later of loss week (lost time) or week reported
    • waiting period is 2 weeks
  6. Benefit amount
    • basic benefit rate is 55% up to maximum amount
    • based on average insured earnings in the most recent 26 weeks worked
    • insured earnings = total earning / max[# weeks worked in last 26, divisor]
  7. Family supplement
    • provides additional benefits to low-income families with children
    • automatically added to EI payments
    • still, maximum benefit cap applies
  8. Working while receiving EI benefits
    • individuals can earn up to max[$50/week, 25% of benefit] without reducing EI
    • exceptions are maternity or sickness benefits: earnings are deducted dollar per dollar
  9. Contributions
    • employer rate is 1.4 times the employee’s rate
    • employees earning less than $2,000 are entitled to a refund of contributions
    • employer is not refunded in the above situation
    • employers with an approved wage loss replacement plan qualify for a rate reduction
    • federal government (exclusive jurisdiction) covers some special benefits
  10. EI premium reduction program
    • employer is deemed first payer and EI is second payer
    • cost of EI fund is reduced if employer operates a short-term disability plan for employees
    • amount of deduction depends on the type of plan
    • at least 5/12 of premium reduction must be returned to employees (directly or indirectly)
    • benefits must be ≧ EI benefits in terms of amount, duration, contract provisions
  11. Supplemental plans
    • may provide supplemental benefits to increase employee’s income while receiving EI
    • supplement plans are not deducted from EI provided that:
    •    payment + EI ≦ normal weekly wage
    •    payment is not used to reduce other accumulated employment benefits 
    • payment can be paid during EI waiting period without affecting start of EI benefits
    • payments are not considered insurable earnings, therefore no EI premium is deducted
  12. Taxation
    • EI premiums paid by employer are a tax-deductible expense
    • EI premiums paid by employer do not give raise to taxable income for employee
    • premiums paid by the employee give rise to a tax credit (15%)
    • EI benefits are taxable income to the recipient
  13. Claimants with salaries above some threshold:
    • first-time claimant (<1 week="" of="" benefits="" in="" 10="" taxation="" years="" no="" clawback="" br="">special benefits receivers = no clawback
    • otherwise repay 30% of min[net income in XS of threshold, total benefits]
  14. Quebec Parental Insurance Plan
    • no waiting period
    • higher maximum eligible salary
    • offers choice between 2 options which differ in terms of duration and level of benefits
    • maternity: 12/70% or 15/75%
    • paternity: 5/70% or 3/75%
    • parental: 7/70% and 25/55% or 25/75%
    • adoption: 12/70% and 25/55% or 28/75%
    • paid by employers, employees and self-employed
    • QC residents get reduced EI
Card Set:
Morneau - Employment Insurance
2014-04-12 15:24:37
Pension & Benefits
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