Morneau - EI

  1. EI objectives
    1. Temp income replacement for job loss not from their own fault
    2. Encourage people to go back to workforce. e.g. some training programs are provided.
  2. EI eligibility req'ts
    1. Payable to individuals who loss their jobs nto from own fault
    2. Must be willing and capable of working and actively looking for work
    3. Not eligible:
      • quit voluntarily
      • fired due to misconduct
      • on strike as part of a union
  3. How is EI funded
    1. Contributions from employers and employees
    2. General tax revenues
  4. Min requirements for employee benefit plans to qualify for EI premium reduction
    • Must not be reduced for EI payments
    • Disability benefit must be at least as high as EI benefits
    • Benefits must be paid out within 2 weeks
    • Premium reduction to be returned to employees
  5. Acceptable arrangements to return a portion of EI premium reduction to employees
    • Written agreement on how savings will be returned
    • Cash refund
    • Additional benefits (upgrading existing benefits or more time off work)
  6. Tax treatment of EI wrt. premium and benefits
    1. Prems paid by employer are tax-deductible expense
    2. premium paid by employee receives tax credit (on income tax)
    3. Benefits are taxable income
Card Set
Morneau - EI
Morneau Shepell - Chp 17 EI