Personal Finance

Does OT count towards EI?

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  • Jun 19th, 2017 10:28 am
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[OP]
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Jun 18, 2005
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Courtice

Does OT count towards EI?

Just was sitting down with my union service rep in regards to parental leave. He wrote down my wage and that I work 40 hours. I told him I have worked 8 hours OT for the past two years he said that dosent matter and that's what they always put.

When it comes to how much EI will pay me for parental leave, do they only calculate your income based on regular hours?

My past 12 month income with OT and bonus is 60k. Just regular time it is 42k.

Will I receive Max EI for my 60k or just 55 percent of 42k?
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As of January 1, 2017, the maximum yearly insurable earnings amount is $51,300. This means that you can receive a maximum amount of $543 per week.
[OP]
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Courtice
vkizzle wrote:
Jun 14th, 2017 1:30 pm
As of January 1, 2017, the maximum yearly insurable earnings amount is $51,300. This means that you can receive a maximum amount of $543 per week.
Yeah I knew that part. He wasn't trying to tell me my OT wouldn't count and only put me down as 40 hours at my std rate, that's around 42k. With my OT I reach the maximum.

He was trying to tell me only my std rate income would count. So he was trying to say my EI would be calculated at 55 percent of 42k instead of the max EI.

Is this correct? If OT does indeed count will what he put on the form mess it up?
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vkizzle wrote:
Jun 14th, 2017 1:30 pm
As of January 1, 2017, the maximum yearly insurable earnings amount is $51,300. This means that you can receive a maximum amount of $543 per week.
thats doesnt quite answer his question.

for EI purposes any income should be counted, and in fact they only calculate X amount of your best weeks over the previous 52 weeks. the person shouldnt be just arbitrarily filling in details "based on 40 hours a week", he should be using actual numbers based on was was in fact earned.

maybe someone else can confirm this

https://www.canada.ca/en/services/benef ... weeks.html
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Trix77 wrote:
Jun 14th, 2017 1:34 pm
Yeah I knew that part. He wasn't trying to tell me my OT wouldn't count and only put me down as 40 hours at my std rate, that's around 42k. With my OT I reach the maximum.

He was trying to tell me only my std rate income would count. So he was trying to say my EI would be calculated at 55 percent of 42k instead of the max EI.

Is this correct? If OT does indeed count will what he put on the form mess it up?
I beleive the confusion is "standard" working hours to meet the min 600hrs worked to be qualified.
Payment is calculated based on your reported gross income; which would include OT.
Last edited by vkizzle on Jun 14th, 2017 1:38 pm, edited 1 time in total.
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basically, if, after you recieve your assessment it ISN'T $543 weekly, then just call and state that you earned above the maximum amount and should be getting the maximum EI, someone at the office can tell you how to go about proving your claim. but it might just come from CRA directly and what your guy filled in was just for 600hrs purposes like vkizzle said
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May 28, 2005
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What was put on your ROE? The ROE should have the pay periods with all your insurance earnings which is used to calculate your benefit rate.

OT hours and insurable earnings should count towards EI
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[OP]
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Courtice
Thanks for the answers guy.

I haven't receive ROE yet. Not on parental leave as of yet.

So I'll receive maximum if I earned 60k in past 12 months via regular hourly rate, OT, bonuses? Just for extra clarification sake haha
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Trix77 wrote:
Jun 14th, 2017 2:01 pm
Thanks for the answers guy.

I haven't receive ROE yet. Not on parental leave as of yet.

So I'll receive maximum if I earned 60k in past 12 months via regular hourly rate, OT, bonuses? Just for extra clarification sake haha
yes haha any actual gross income above $51,300 (from all sources) should get you the maximum EI amount
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BUT i just remembered that they changed/are changing the parental leave from 12 months to 18 months, so if you pick/take 18 months then you get the 55% still, but spread over 18 months instead of 12. so youd get 361/week for 18 months instead of 542/week for 12
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SuperSauvage wrote:
Jun 14th, 2017 2:09 pm
BUT i just remembered that they changed/are changing the parental leave from 12 months to 18 months, so if you pick/take 18 months then you get the 55% still, but spread over 18 months instead of 12. so youd get 361/week for 18 months instead of 542/week for 12
No, $361 is more than 33% if $542 is 55%.
(obviously if <$550 was 55%, 33% would be <$330)

I think you get 15 weeks mat leave at 55%, and then 37 weeks parental leave at 55% or 61 weeks parental leave at 33%.
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ace604 wrote:
Jun 14th, 2017 2:20 pm
No, $361 is more than 33% if $542 is 55%.
(obviously if <$550 was 55%, 33% would be <$330)

I think you get 15 weeks mat leave at 55%, and then 37 weeks parental leave at 55% or 61 weeks parental leave at 33%.
http://globalnews.ca/news/3329912/feder ... ity-leave/

"Some parents argue that the benefits already don’t pay enough — the max payout is $543 per week. Spreading that out to 18 months works out to a maximum of $362 per week."
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SuperSauvage wrote:
Jun 14th, 2017 2:25 pm
http://globalnews.ca/news/3329912/feder ... ity-leave/

"Some parents argue that the benefits already don’t pay enough — the max payout is $543 per week. Spreading that out to 18 months works out to a maximum of $362 per week."
That's reporters making bad assumptions that were not announced. Clearly $362 is more than 33%, right?

See:
"4. Extending your leave means stretching out your benefits at a lower rate. Parents who want to take 18 months will have to spread 12 months of benefits over their extra weeks. Right now, for one year, you get 55 per cent of your income up to a maximum of $543 a week. If you want to take 18 months, you would receive 15 weeks of maternity leave at the 55-per-cent rate, and the next 61 weeks of parental leave at 33 per cent"
http://www.theglobeandmail.com/life/par ... le34414374
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ace604 wrote:
Jun 14th, 2017 2:30 pm
That's reporters making bad assumptions that were not announced. Clearly $362 is more than 33%, right?

See:
"4. Extending your leave means stretching out your benefits at a lower rate. Parents who want to take 18 months will have to spread 12 months of benefits over their extra weeks. Right now, for one year, you get 55 per cent of your income up to a maximum of $543 a week. If you want to take 18 months, you would receive 15 weeks of maternity leave at the 55-per-cent rate, and the next 61 weeks of parental leave at 33 per cent"
http://www.theglobeandmail.com/life/par ... le34414374
51300x0.55=28215
28215/52=542

which is what they would recieve for the first 15 weeks in your scenario.

then to get the other 61 weekly rate, its 33% of the maximum instead of 55% so:

51300x0.33=16929
16929/52=325

for the remaining 61 weeks for a total 18 month benefit amount of 27955 which when averaged out over 18 months:

27955/78=358

so we're both kinda right lol
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Hmm, even the Globe numbers don't add up 100%.

It's a lot closer though.

Mat leave is 15, Parental is 35, not 37 I said earlier.
It adds up to 50, they claim a year of benefits I guess because that includes 2-week waiting period?

Extending it from "12 months" to "18 months" you would think should add half a year, or 26 weeks.

35+26 = 61 weeks

The problem is the 33% number worked when I used 37 weeks vs 61.

It doesn't quite work when you use 35 vs 61.

37 * 55% / 61 = 33.36%
35 * 55% / 61 = 31.56%

I wonder if someone in the government announcement of the 33% rate made a similar mistake. Or I'm missing something.
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