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  • Sep 10th, 2007 8:08 pm
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[OP]
Deal Addict
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Apr 14, 2005
1653 posts
86 upvotes

EI Questions..

My wife is on a maternity leave and her EI has started to roll in. I have a couple of questions for you folks. I am very clueless on this topic, so any help would be appreciated.

What should be deducted? We haven't received a statement yet, but there's a deposit of "UI Canada - $810" in our bank account. I had previously concluded that she would be receiving the maximum amount possible based on her income. My question is, in practice, what is that amount? What is it after deductions? i.e. is she supposed to pay CPP, etc as well as fed/prov taxes?

My second question: what would make her ineligible in terms of having income? Does ANY income make her ineligible or is there some limit? I ask because she does a very small amount of bookkeeping on the side for a relatives business and the compensation has always been above-board (i.e. she claims the income, as she should, on her taxes). Since this is a relatively small effort to do this work throughout the year, she is not going to refuse to continue helping the relative.. the question is, should she accept pay for it? It amounts to $1,500-$2,000 over a year.
3 replies
Sr. Member
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Mar 24, 2007
628 posts
11 upvotes
They only take off Federal tax.
As for working, when you collect regular EI. you can earn a percentage of what you get - 20%? 25%? I can't remember. I'm sure that it is all on the HRDC website. You do need to report any earnings to HRDC, so I would definitely call someone to find out what to do as they waive the cards/reporting when you are on mat leave.
If you search the parenting website, their is definitely a thread dealing with all things mat leave related.
Deal Addict
Feb 24, 2007
1189 posts
80 upvotes
Beamsville
Your best bet would be you or your wife heading over to the Pogey website and looking up the details. I've always been told it's about $100 your allowed to earn but that's second or third hand info.

Also they only take the Fed tax off of it and IMHO they take far to little so it may cause you to "owe" some money come tax time. Also Normal EI has a repayment % come tax time, I don't know how it works with Maternity leave but when I was laid off last year I had to repay 30% of my benefits so you may want to find out about that while your looking for info.
[OP]
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Apr 14, 2005
1653 posts
86 upvotes
This what I found:
[QUOTE]If you work while on maternity or sickness benefits, your earnings will be deducted dollar for dollar from your benefits.

On the other hand, if you work while on parental benefits you can earn $50 per week or 25% of your weekly benefits, whichever is higher. Any monies earned above that amount will be deducted dollar for dollar from your benefits.[/QUOTE]

Worth noting is that "Maternity benefits" last up to 15 weeks and "Parental benefits" last up to 35 weeks. That would suggest that you could earn around $100/week during the parental leave period.

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