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Difference between revisions of "Quantifying Employment Insurance Benefits (8:VI)"
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Quantifying Employment Insurance Benefits (8:VI) (view source)
Revision as of 23:17, 16 August 2018
, 23:17, 16 August 2018→C. Effect of Earnings
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:'''How it works''' | :'''How it works''' | ||
:The Commission sets a threshold which is 90% of the claimant weekly insurable earnings. Below this threshold, for every dollar, a claimant earns 50 cents will be deducted from their benefits. Above this threshold, a dollar of benefits will be deducted for every dollar earned. This is referred to as the “default rule”. | :The Commission sets a threshold which is 90% of the claimant weekly insurable earnings. Below this threshold, for every dollar, a claimant earns 50 cents will be deducted from their benefits. Above this threshold, a dollar of benefits will be deducted for every dollar earned. This is referred to as the “default rule”. | ||
:The claimants may choose to opt for the “optional rule”. The optional rule allows the claimant to keep the equivalent of roughly one day’s work which is defined as $75 or 40% of the claimant’s benefit rate (whichever is greater) without any deduction to the EI benefit they receive. Any earnings after this amount will be deducted dollar to dollar from the EI benefits the claimant is receiving. | :The claimants may choose to opt for the “optional rule”. The optional rule allows the claimant to keep the equivalent of roughly one day’s work which is defined as $75 or 40% of the claimant’s benefit rate (whichever is greater) without any deduction to the EI benefit they receive. Any earnings after this amount will be deducted dollar to dollar from the EI benefits the claimant is receiving. | ||
:'''Example from Service Canada Website:''' | :'''Example from Service Canada Website:''' | ||
:Melissa got laid off when the construction company where she was working lost a major contract. Her weekly earnings averaged out to $800, so her weekly EI benefits are $440. She then finds a part-time job at another construction company where she works one day and earns $160 per week. | |||
: | :Automatically under the “default rule”, she is allowed to keep 50 cents of EI benefits for every dollar she earns, so she takes home $520 per week in combined EI benefits and wages ($360 of EI benefits + $160 in wages). | ||
Automatically under the “default rule”, she is allowed to keep 50 cents of EI benefits for every dollar she earns, so she takes home $520 per week in combined EI benefits and wages ($360 of EI benefits + $160 in wages). | |||
:If she chooses the “optional rule”, she can earn up to the greater of $75 or 40% (176) of her benefit rate, without any deductions from her benefits. Since she only earns $160 per week from her work while on claim, she can keep all of her EI benefits. Under this option, she would take home $600 per week in combined EI benefits and wages ($440 of EI benefits + $160 in wages). | :If she chooses the “optional rule”, she can earn up to the greater of $75 or 40% (176) of her benefit rate, without any deductions from her benefits. Since she only earns $160 per week from her work while on claim, she can keep all of her EI benefits. Under this option, she would take home $600 per week in combined EI benefits and wages ($440 of EI benefits + $160 in wages). | ||
:In this example, Melissa would likely choose the “optional rule” if she never worked more than one day per week as she takes home $80 more per week. | :In this example, Melissa would likely choose the “optional rule” if she never worked more than one day per week as she takes home $80 more per week. | ||
:'''Important reminders''' | :'''Important reminders''' | ||
:If a claimant is receiving EI sickness benefits or EI maternity benefits, this pilot project does not apply. Any earnings the claimant has will continue to be deducted dollar for dollar from benefits. If the claimant works a full working week, the claimant will not receive any EI benefits, regardless of the amount the claimant earns. | :If a claimant is receiving EI sickness benefits or EI maternity benefits, this pilot project does not apply. Any earnings the claimant has will continue to be deducted dollar for dollar from benefits. If the claimant works a full working week, the claimant will not receive any EI benefits, regardless of the amount the claimant earns. | ||
:Claimants do not have to apply to the Working While on Claim pilot project as it will automatically be applied to their claim. The “default rule” will be the method of calculation that automatically applies. However, claimants must request to opt for the “optional rule” in order to have their benefits calculated accordingly. | :Claimants do not have to apply to the Working While on Claim pilot project as it will automatically be applied to their claim. The “default rule” will be the method of calculation that automatically applies. However, claimants must request to opt for the “optional rule” in order to have their benefits calculated accordingly. | ||
:'''What if the claimant works or lives outside Canada?''' | :'''What if the claimant works or lives outside Canada?''' | ||
:If the claimant is living in the United States and works in Canada, or if the claimant crossed the Canada–United States border between the claimant’s residence and workplace and the claimant is receiving EI benefits, this pilot project will apply. Visit the Employment Insurance and Workers and/or Residents outside Canada Web page for more information: https://www.canada.ca/en/services/benefits/ei/ei-outside-canada.htm | :If the claimant is living in the United States and works in Canada, or if the claimant crossed the Canada–United States border between the claimant’s residence and workplace and the claimant is receiving EI benefits, this pilot project will apply. Visit the Employment Insurance and Workers and/or Residents outside Canada Web page for more information: https://www.canada.ca/en/services/benefits/ei/ei-outside-canada.htm | ||