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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 00:02, 9 September 2022
, 00:02, 9 September 2022→C. Effect of Earnings
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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. | 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. | ||
'''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 $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:''' | |||
: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. | :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). | |||
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. In this scenario, she will choose to keep 40% ,as she only earns $160 per week from her work while on claim, so 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. | |||
'''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?''' | |||
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, the 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 === | ||