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EI (Employment Insurance) discussion thread

  • Last Updated:
  • Nov 18th, 2017 10:40 am
Deal Addict
Nov 2, 2013
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Edmonton, AB
mikewrz wrote:
Oct 30th, 2017 10:33 am
If I am entitled to $543 weekly, and I work zero hours for the week (currently in an on-call job), how much tax is taken off the $543?
Image

Though note:

(1) If you make over $61K or so over the year, you'd have to repay 30% of any EI you received during the year, at tax time.
(2) Your EI is still subject to your standard tax brackets. So if you're being undertaxed now, you'll still pay up at tax time (or get less refund). How much you get taxed now is kind of meaningless with that respect. It just gets us investing/speculating-happy people excited, who like to, with RFD tradition, like those extra cents time value of deferred tax. :)
Deal Fanatic
Nov 21, 2011
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Edmonton
FirstGear wrote:
Nov 6th, 2017 8:35 pm
Image

Though note:

(1) If you make over $61K or so over the year, you'd have to repay 30% of any EI you received during the year, at tax time.
(2) Your EI is still subject to your standard tax brackets. So if you're being undertaxed now, you'll still pay up at tax time (or get less refund). How much you get taxed now is kind of meaningless with that respect. It just gets us investing/speculating-happy people excited, who like to, with RFD tradition, like those extra cents time value of deferred tax. :)
It's based on net income and it's 30% of the lesser of your income over $64k or your regular benefits over the tax year.
Newbie
Nov 3, 2017
6 posts
clseea wrote:
Nov 6th, 2017 8:18 pm
Unless you're traveling solely on the weekend, you need to report all absences. Leaving at anytime during normal working hours on a weekday isn't going to get you paid. You're not available for work if you're traveling. There are certain technicalities but you can't just take a 4 day weekend and get paid
So the lady working at EI is incorrect? I'll them again tomorrow.

mikewrz wrote: ↑ If I am entitled to $543 weekly, and I work zero hours for the week (currently in an on-call job), how much tax is taken off the $543?
My taxes are $58 on $537
Newbie
Nov 20, 2016
26 posts
5 upvotes
If a person has claimed EI in 2017 but receives a lump sum severance settlement in 2018 for additional severance pertaining to 2017, does this impact the amount of EI they may have to repay for 2017? Or if the settlement is received in 2018, and as it only impacts 2018 taxable income, will it have no impact on the 2017 EI claim? Thank you.
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Jul 11, 2011
833 posts
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Ontario
jimmyho56 wrote:
Nov 7th, 2017 8:50 am
If a person has claimed EI in 2017 but receives a lump sum severance settlement in 2018 for additional severance pertaining to 2017, does this impact the amount of EI they may have to repay for 2017? Or if the settlement is received in 2018, and as it only impacts 2018 taxable income, will it have no impact on the 2017 EI claim? Thank you.
If the severance constitutes earnings then yes, you will have money to repay
Newbie
Nov 20, 2016
26 posts
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hebsie wrote:
Nov 7th, 2017 9:41 am
If the severance constitutes earnings then yes, you will have money to repay
So it doesn't matter whether the severance is received in 2017 or 2018? If you have filed your 2017 tax return before the severance is received, do you repay the excess EI on the filing of your 2018 return or have to re-file your 2017 return? Thank you.
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Jul 11, 2011
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Ontario
jimmyho56 wrote:
Nov 7th, 2017 9:47 am
So it doesn't matter whether the severance is received in 2017 or 2018? If you have filed your 2017 tax return before the severance is received, do you repay the excess EI on the filing of your 2018 return or have to re-file your 2017 return? Thank you.
Here's something I googled, kind of pertains to your situation.

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Question: I am fighting with my employer to receive additional severance. If I get more money, how will this impact my EI situation?

Receiving additional severance can affect your EI situation. Since how this works can be a little complicated, consider the following example:

John was initially provided with 1 month's severance pay by his employer, valued at $4500.00. He then went to Service Canada and was put on EI receiving $524 per week for a maximum of 20 weeks. Five months after he was dismissed, his employer agreed to pay an additional 3 months of notice, or a total of $13,500.00 in additional severance.

John reports this additional severance to Service Canada. He is then told he owes the Government $6812.00 for overpayment. This is because for a period of 3 months (the same length as his extra severance) he has received money from both his employer and Service Canada.

While this outcome might seem bad at first glance, there is an important upshot. As a result of John now having to repay 3 months' worth of EI, he is able to tack that period of lost EI benefits to fill the time after his enhanced severance ends. As a result, John may be able to eventually regain the money refunded to Service Canada for the overpayment if he remains unemployed.

So, in total, John's situation will look like this:

Before Enhanced Severance:1 Months' Severance ($4500) plus 20 potential weeks of EI ($10,480) for a total of $14,980 of income support over a period of 24-25 weeks.
After Enhanced Severance:4 Months' Severance ($18,000) plus 20 potential weeks of EI ($10,480) for a total of $28,480 of income support over a period of 37 weeks.
Additional severance can admittedly cause a hassle with regards to EI interruption and repayment. However, if you are struggling to find new work enhanced severance can be made to work with EI to put a dismissed worker in a far better financial situation than he or she might be otherwise.

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As for taxes, I would assume that the taxes would be paid in the year you received the severance, so if you receive a payment next year, it'll be claimed on 2018's taxes
Newbie
Nov 20, 2016
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Ok, thank you for the details. That seems to make sense. At least I get the deferral of the repayment until I have to file my 2018 return in 2019.
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Jul 11, 2011
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Ontario
jimmyho56 wrote:
Nov 7th, 2017 10:13 am
Ok, thank you for the details. That seems to make sense. At least I get the deferral of the repayment until I have to file my 2018 return in 2019.
I'd still be checking with the CRA on the exact procedure regarding how to report it.
Newbie
Nov 3, 2017
6 posts
clseea wrote:
Nov 6th, 2017 8:18 pm
Unless you're traveling solely on the weekend, you need to report all absences. Leaving at anytime during normal working hours on a weekday isn't going to get you paid. You're not available for work if you're traveling. There are certain technicalities but you can't just take a 4 day weekend and get paid
So I called again,
They do not count the day you leave or the day you return. The example the lady used is if you left Monday and returned Friday you would not be eligible for benefits Tuesday-Thursday. Stat holidays do not count as weekend days. The longest you can be out of the country without it affecting your payments is Friday to Monday, you still need to report these days as being out of the country. To clseea's point if you are doing this every weekend you might get flagged in the system.
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Jan 31, 2006
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Toronto
Wondering80 wrote:
Nov 7th, 2017 5:08 pm
So I called again,
They do not count the day you leave or the day you return. The example the lady used is if you left Monday and returned Friday you would not be eligible for benefits Tuesday-Thursday. Stat holidays do not count as weekend days. The longest you can be out of the country without it affecting your payments is Friday to Monday, you still need to report these days as being out of the country. To clseea's point if you are doing this every weekend you might get flagged in the system.
I doubt it, I leave Canada on thursday midnight and come back sunday night, I did not got pay for 1 day (which is friday). If you think she is right, try it and show us your EI benefit statement.
Newbie
May 31, 2015
78 posts
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British Columbia
cgtlky wrote:
Nov 7th, 2017 7:44 pm
I doubt it, I leave Canada on thursday midnight and come back sunday night, I did not got pay for 1 day (which is friday). If you think she is right, try it and show us your EI benefit statement.

Wondering80 is correct in what he is saying. Policies and procedures change and this one did recently,
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Jan 31, 2006
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amb1977 wrote:
Nov 7th, 2017 8:34 pm
Wondering80 is correct in what he is saying. Policies and procedures change and this one did recently,
Link please?
Newbie
May 31, 2015
78 posts
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British Columbia
cgtlky wrote:
Nov 7th, 2017 8:36 pm
Link please?
There is no “link”. If you don’t believe me, call in and ask. I should add that you still need to prove availability for those days.
Newbie
Nov 3, 2017
6 posts
cgtlky wrote:
Nov 7th, 2017 7:44 pm
I doubt it, I leave Canada on thursday midnight and come back sunday night, I did not got pay for 1 day (which is friday). If you think she is right, try it and show us your EI benefit statement.
No you're right you will lose benefits for that day because you are missing a full 24 hour day, your leave day is Thursday and your return day is Sunday so Friday you are not eligible for benefits. If you left Thursday and returned Friday you would not lose any benefits or if you left Friday early am and returned Sunday you would not lose any benefits. Try leaving early Friday morning at 12:01 am and you should be paid for it. Returning early on a weekend does not credit you a day. The only reason the weekend gives you 4 days is because Saturday Sunday don't count and Friday and Monday are leave return days.

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