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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 23:09, 8 December 2021
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The benefit payable to a claimant may be reduced if the claimant has “earnings” during the benefit period. It may be possible both to work part-time and receive EI benefits at the same time, but all income must be reported on the report cards. | The benefit payable to a claimant may be reduced if the claimant has “earnings” during the benefit period. It may be possible both to work part-time and receive EI benefits at the same time, but all income must be reported on the report cards. | ||
The | The EI Working While on Claim project is a way to help claimants stay connected with the labour market (''EI Regulations'' ss 77.95-77.96).. It applies to claimants earning money while collecting any of the following types of EI benefits: | ||
*regular benefits | *regular benefits | ||
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*sickness and pregnancy benefits | *sickness and pregnancy benefits | ||
As soon as a claimant completes the one-week EI waiting period, the | As soon as a claimant completes the one-week EI waiting period, the Working While on Claim project will automatically apply to any money the claimant earns while the claimant is collecting EI benefits. Due to Covid-19, the waiting period may be waived. (As of the time of writing, these changes are in effect until September 25, 2021. Please check the CRA website for potential extensions or changes). | ||
:'''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 claimants may choose to opt for the “optional rule”. The optional rule allows the claimant to keep $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. | ||
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:'''Important reminders''' | :'''Important reminders''' | ||
: | :Claimants do not have to apply to the Working While on Claim 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 | :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 Working While on Claim 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 | ||
=== 1. Earnings During the Waiting Period === | === 1. Earnings During the Waiting Period === | ||
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All earnings during the waiting period are deducted dollar for dollar from the benefits payable in respect of the first three weeks for which benefits are otherwise payable. There is thus little incentive to work during the waiting period. | All earnings during the waiting period are deducted dollar for dollar from the benefits payable in respect of the first three weeks for which benefits are otherwise payable. There is thus little incentive to work during the waiting period. | ||
=== 2. Earnings of Sick or Pregnant Claimants under Supplemental | === 2. Earnings of Sick or Pregnant Claimants under Supplemental Unemployment Benefit Plans === | ||
Amounts paid to the claimant during periods of illness or pregnancy under an approved Supplemental | Amounts paid to the claimant during periods of illness or pregnancy under an approved Supplemental Unemployment Benefit plan will not be deducted from EI benefits. These plans allow the employer to “top up” the regular EI benefits without reductions. | ||
Individual Supplemental | Individual Supplemental Unemployment Benefit plans must be approved by the Commission, which ensures that they meet the requirements of s 37(2). | ||
An employee normally benefits from these plans while drawing EI benefits. If the worker is ineligible for EI, he or she may still qualify for Supplemental | An employee normally benefits from these plans while drawing EI benefits. If the worker is ineligible for EI, he or she may still qualify for Supplemental Unemployment Benefits that do not count as earnings for the purpose of determining waiting periods. | ||
{{LSLAP Manual Navbox|type=chapters8-14}} | {{LSLAP Manual Navbox|type=chapters8-14}} | ||