Personal Finance

Does OT count towards EI?

  • Last Updated:
  • Jun 19th, 2017 10:28 am
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Sr. Member
Mar 10, 2010
835 posts
84 upvotes
Looking at the last time I claimed EI it worked out to be 7% from each cheque, so not insignificant, but agreed not the same percentage as off a typical paycheque.
Member
User avatar
Jul 9, 2016
396 posts
131 upvotes
Hamilton
Clacker wrote:
Jun 16th, 2017 9:06 pm
Looking at the last time I claimed EI it worked out to be 7% from each cheque, so not insignificant, but agreed not the same percentage as off a typical paycheque.
i concede to you then, it's been too long for me to make a proper case lol. maybe when i was making EI i was making so little that i wasnt above the minimum tax claim threshold thingy and didnt have much/any deducted.
Newbie
Jun 1, 2017
36 posts
5 upvotes
I am currently on mat leave and OT is included in the calculations. I get the max and after 'taxes' $1032 is deposited every 2 weeks. You do have to watch the taxes though, a girl I work with doesn't have any taxes come off and although we have the same benefit amount, our net amounts are different.
Deal Guru
Aug 22, 2011
13525 posts
3256 upvotes
Ottawa
Tinka844 wrote:
Jun 19th, 2017 10:01 am
I am currently on mat leave and OT is included in the calculations. I get the max and after 'taxes' $1032 is deposited every 2 weeks. You do have to watch the taxes though, a girl I work with doesn't have any taxes come off and although we have the same benefit amount, our net amounts are different.
This is true and those receiving mat benefits should be prepared to pay some back; once they file their income taxes.
Deal Addict
User avatar
Dec 27, 2009
3046 posts
1081 upvotes
Ottawa, ON
Agreed with the others, the amounts that come of the EI cheques for taxes are inadequate assuming you had any other earnings that year (if your EI started 1/2 way through the year you will likely owe taxes). Just be prepared. I would look at what your gross from EI will be from now until end of December, and add that up with what your earnings from your regular job were. Then take that number for the entire year (total earnings) and average it out for each month (ie: if you earned $30K from your job, and you expect $12K from EI - then use $42K and average that to $3,500 monthly). You can then plug that number into CRA's payroll deductions calculator (on the CRA website - I think it is under the "business" heading). Select 12 pay periods per year, plug in your province, use $3,500 (in the example - your number will be different), and see how much tax should be coming off monthly (don't worry about the EI and CPP amount as that will be taken care of - just tax you are worried about). Then take that number and multiply by 12 to give you the amount owing for the year. Now you can deduct whatever your employer has deducted from you for tax and whatever remains will be the amount that "should" come off from the EI (but won't). Figure out what EI is actually deducting, and plan accordingly from there. If you have to set aside an extra $200 per month in an account for tax time, then do so.

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