Employment Insurance Benefits

Transcription

1 WELLSPRING CANCER SUPPORT FOUNDATION A Lifeline to Cancer Support Employment Insurance Benefits Resource Sheet The Money Matters program in Calgary, Alberta is generously supported by The Calgary Foundation and other anonymous donors. Wellspring The resource sheets are not to be shared, altered or duplicated without the permission of the Wellspring Cancer Support Foundation.

2 This resource sheet has been researched and written by the Wellspring Money Matters program staff. Wellspring 2014 The resource sheets are not to be shared, altered or duplicated without the permission of the Wellspring Cancer Support Foundation. The Money Matters program in Calgary, Alberta is generously supported by The Calgary Foundation and other anonymous donors. The Wellspring Cancer Support Foundation is a network of community-based cancer support centres. It offers approximately 50 different programs and services to meet the emotional, psychological, informational and spiritual challenges of a cancer diagnosis. Programs are available to all cancer patients, and their family members, at no charge and without referral. For more information about Wellspring Calgary please visit: or for other locations please visit:

3 EMPLOYMENT INSURANCE BENEFITS: REGULAR BENEFITS Program Overview Employment Insurance Benefits (EI Benefits) is a federal program, administered through Human Resources and Skills Development Canada and legislated through the Employment Insurance Act. EI is a contribution-tested program (like CPP-Disability); therefore, the program is only available to those who have worked the required number of insurable hours during the relevant qualifying period. Your eligibility or entitlement is not impacted by any of your liquid or acquired assets. There are two EI Benefits Programs: Regular Benefits for those who are able to work and Special Benefits, including Sickness Benefits, Compassionate Care Benefits, Maternity/Parental Benefits and Benefits for Parents of Critically Ill or Injured Children. EI Special Benefits are available to self-employed individuals who enter into the Employment Insurance Measure for Self-Employed Persons. This fact sheet will focus on Regular Benefits. Qualifying Criteria Employment Insurance provides Regular Benefits to individuals who lose their jobs through no fault of their own (e.g. due to shortage of work, seasonal or mass lay-offs) and are available for and able to work, but can t find a job. If you voluntarily quit your job without just cause or if you are fired due to your own misconduct, you will not be paid regular benefits. To be eligible for regular benefits you must show that you have been without work and without pay for at least 7 consecutive days. In addition, you must have worked for the required number of insurable hours in the qualifying period. The qualifying period is the 52 weeks before the start of your claim (or the time since the start of your last claim if it was less than 52 weeks ago). Service Canada may extend the qualifying period up to 104 weeks if you could not work for all or a portion of the qualifying period because you were ill, injured or pregnant. ~ 3 ~

4 The hours you must have worked in the qualifying period are based on where you live and the unemployment rate in your economic region at the time of filing your claim for benefits. Most people will need between 420 and 700 insurable hours in their qualifying period to qualify for EI Regular Benefits. For example, in March 2014, the minimum number of required insurable hours for those living in Calgary was 700. Note that if you are new to the workforce or you ve been out of the workforce for 2 or more years, you may need at least 910 hours of insurable work in the qualifying period in order to qualify for EI Regular Benefits. To determine the number of required insurable hours in your region, you can first find your EI economic region by entering your postal code at: Click on your EI economic region to find your required number of insurable hours. Application Process All applications for EI are completed online. Visit the Service Canada website at From the Online Services and Forms menu on the right hand side of the page, click on Apply for Employment Insurance Benefits. Your application will consist of the online application and your Record of Employment (usually filed online by your employer). You should apply as soon as you stop working. Delays in filing your application beyond four weeks after your last day of work may result in loss of benefits. The first two weeks following the date you left work is considered a waiting period and no benefits are paid for this period. It typically takes at least 6 to 8 weeks to receive your first payment. Payment Amount The basic benefit is 55% of your average earnings, up to a maximum of $514/ week (2014 rate). Regular benefits can be paid from 14 to a maximum of 45 weeks, depending on the unemployment rate in your region and the amount of insurable hours you have accumulated in the qualifying period. In Calgary, the minimum number of weeks payable for Regular Benefits is 14 weeks and the maximum number of weeks payable for Regular Benefits is 36 weeks. EI payments are taxable. To receive your EI payments, you must submit reports to Service Canada every 2 weeks confirming your availability for work and noting any earnings in that benefit period. ~ 4 ~

5 Earnings paid or made payable to you by your employer at the end of your employment, while you are receiving benefits or later for a period that benefits were claimed (e.g. vacation pay, severance pay, wages in lieu of notice), generally affect the payment of your benefits. These earnings may delay the start of your claim or the payment of your benefits or they may reduce the amount of your benefits. You should contact Service Canada to discuss your particular situation. EI Regular and the Job Search Process If you are collecting EI Regular Benefits, you are responsible for conducting reasonable job searches, documenting your job search activities and accepting any offer of suitable employment. The Connecting Canadians with Available Jobs (CCAJ) initiative, which came into effect on January 6, 2013, has clarified the definitions of suitable employment and reasonable job search. Several factors will determine what will be considered suitable employment, including personal circumstances, working conditions/wages, commuting time (a one-hour commute is considered reasonable) and hours of work. CCAJ takes into account your EI benefit payment amount and ensures that only employment opportunities where you are making more money while working than while receiving Regular Benefits are considered suitable. Reasonable job search activities include assessing employment opportunities, preparing resumes and cover letters, attending job search workshops or job fairs, networking, contacting prospective employers, submitting job applications and attending interviews. Further, you must be looking for a job every day that you are receiving benefits. Your job search efforts must be documented for the entire duration of your claim and must include the date, names of employers you have contacted and their contact information, the type of work you were looking for and the results. Service Canada requires that you keep this information in a safe place as they may ask you to provide it to them within six years of your claim. ~ 5 ~

6 Working while on EI Regular Under current EI rules, you can work a certain amount while you are receiving EI Regular Benefits without your benefits being reduced. Effective August 5, 2012 until August 1, 2015, a new pilot project is in place that changes the way earnings are deducted. Under the Working While on Claim (WWC) pilot project, once you have served the waiting period, if your earnings are 90% or less of your weekly earnings that were used to calculate your benefit rate, your benefits will be reduced at a rate of 50% of your earnings each week. Any earnings that exceed this 90% threshold will be deducted dollar for dollar from your benefits. Note that if you work a full work week, you will not receive any EI benefits, regardless of the amount you earn. Converting to EI Sickness Benefits while on EI Regular If you become ill while collecting EI Regular benefits, you must report on your biweekly report that you are not ready, willing and capable of working due to illness for the length of your illness. You can continue to collect EI Regular Benefits if you are sick for 4 consecutive weeks. If you are still ill after 4 consecutive weeks, you must convert your EI Regular benefits to EI Sickness benefits by notifying Service Canada and filing a medical certificate. While EI Sickness benefits are generally paid for a maximum of 15 weeks, they will not enable you to increase the length of your EI claim. Your EI Sickness benefits will cease on the date your original EI claim was set to expire. In cases where you are switching between different types of EI benefits, it is advisable to contact Service Canada to discuss your particular circumstances. Leaving the Country While Collecting EI Regular Benefits You are not eligible to receive Regular Benefits while you are away from Canada unless you inform Service Canada that you will be away temporarily and you can show that you are available for work in Canada while abroad. You can be outside Canada for a period of 7 consecutive days (and continue to be paid) for the purpose of attending the funeral of a member of your immediate family or a close relative, accompanying a member of your immediate family to a medical facility, provided that the treatment sought is not readily available in the family member s area of residence in Canada, visiting a member of your immediate family who is seriously ill or injured, or attending a bona fide job interview. ~ 6 ~

7 You can be away from Canada for a period of 14 consecutive days for the purpose of conducting a bona fide job search. If you indicate that you have taken measures to be reached if an employment opportunity presents itself during your absence and that you are able to return to Canada within 48 hours, EI will accept that you have proven your availability. Other Benefits Available through Employment Insurance Sickness Benefits, Compassionate Care Benefits, Maternity/Parental Benefits and Benefits for Parents of Critically Ill or Injured Children (and the potential to transfer between some programs). Sickness Benefits, Compassionate Care Benefits, Maternity/Parental Benefits and Benefits for Parents of Critically Ill or Injured Children are available to selfemployed individuals who enter into the Employment Insurance Measure for Self-Employed Persons. Some employment-related services. Tips/Suggestions If you do not have access to a computer, you can apply online at any Service Canada office or any public Internet access site If you have a paper Record of Employment that your employer did not submit electronically, you should either mail it to Service Canada or drop if off at a Service Canada office Local Service Canada offices can be found on the Service Canada website: Your local Member of Parliament (MP) may be a source of information Contact information If you would like more information, contact: (Service Canada) ~ 7 ~

8 EMPLOYMENT INSURANCE BENEFITS: SICKNESS BENEFITS Program Overview Employment Insurance Benefits (EI Benefits) is a federal program, administered through Human Resources and Skills Development Canada and legislated through the Employment Insurance Act. EI is a contribution-tested program (like CPP-Disability); therefore, the program is only available to those who have worked the required number of insurable hours during the relevant qualifying period. Your eligibility or entitlement is not impacted by any of your liquid or acquired assets. There are two EI Benefits Programs: Regular Benefits for those who are able to work and Special Benefits, including Sickness Benefits, Compassionate Care Benefits, Maternity/Parental Benefits and Benefits for Parents of Critically Ill or Injured Children. EI Special Benefits are available to self-employed individuals who enter into the Employment Insurance Measure for Self-Employed Persons. This fact sheet will focus on Sickness Benefits. Qualifying Criteria In order to be eligible for EI Sickness Benefits, you must be unable to work due to sickness or injury, have your earnings decrease by more than 40%, and have worked and contributed to Employment Insurance for a minimum of 600 hours in the last 52 weeks or since your last claim (this period is called the qualifying period). EI Sickness Benefits are available to self-employed individuals who enter into the Employment Insurance Measure for Self-Employed Persons. Definition of Disability In order to be eligible for Sickness Benefits, you must be unable to work due to sickness or injury. Your application for EI Benefits will include a medical certificate completed by your physician. The medical certificate will note that you are incapable of working, as well as your expected recovery date (if known). ~ 8 ~

9 Application Process All applications for EI are completed online. Visit the Service Canada website at From the Online Services and Forms menu on the right hand side of the page, click on Apply for Employment Insurance Benefits. Your application for EI Benefits will include the online application, a medical certificate completed by your physician and a Record of Employment from your employer (usually filed electronically by your employer). You should apply as soon as you stop working. Delays in filing your application beyond four weeks after your last day of work may result in loss of benefits. The first two weeks following the date you left work is considered a waiting period and no benefits are paid for this period. It typically takes 6 to 8 weeks to receive your first payment. Payment Amount The basic benefit is 55% of your average earnings up to a maximum of $514/week (2014 rate). The Sickness Benefits are paid for a maximum of 15 weeks, or fewer weeks if your doctor indicates on the medical certificate that you can return to work at an earlier date. Money you receive from certain other sources, such as earned income, may be deducted dollar for dollar from your EI payment, but money received from CPP-Disability will not be deducted (since this is considered a pension and not earnings ). EI payments are taxable. To receive your EI payments, you must submit reports to Service Canada every 2 weeks. Working While on EI Sickness Benefits If you work while receiving EI Sickness Benefits, the entire amount you earn will be deducted dollar for dollar from your benefits. ~ 9 ~

10 If you are laid off while collecting EI Sickness Benefits If you are laid off while you are collecting EI Sickness Benefits, you can continue to receive EI Sickness Benefits until they run out. Once your EI Sickness Benefits run out, you can change your claim to a claim for EI Regular Benefits, provided the following conditions are met: 1. You are ready, willing and capable of working; and 2. You have worked the minimum number of required hours in the qualifying period (See our Fact Sheet on EI Regular Benefits for more information). The number of weeks of your EI Sickness Benefits will now count toward the total allowable length of an EI Regular Benefit claim. The total length of time for which you receive EI Benefits (Sickness and Regular) may not exceed one year. In cases where you are switching between different types of EI Benefits, it is advisable to contact Service Canada to discuss your particular circumstances. Leaving the Country while Collecting EI Sickness Benefits You must advise Service Canada if you intend to leave Canada, prior to leaving the country. You can collect Sickness Benefits outside of Canada only if you are going to another country to receive medical treatment not readily or immediately available in Canada at a hospital, medical clinic or a similar facility. If you go to another country for any other reason (e.g. to rest and recuperate), you will not be entitled to benefits for the period that you are outside of the country and your benefit period will not be extended by the length of time that you are outside Canada. Other Benefits Available through Employment Insurance Regular Benefits, Compassionate Care Benefits, Maternity Benefits, Parental Benefits and Benefits for Parents of Critically Ill or Injured Children (and the potential to transfer between some programs). Sickness Benefits, Compassionate Care Benefits, Maternity Benefits, Parental Benefits and Benefits for Parents of Critically Ill or Injured Children are available to self-employed individuals who enter into the Employment Insurance Measure for Self-Employed Persons. Some employment-related services. ~ 10 ~

11 Tips/Suggestions If you do not have access to a computer, you can apply online at any Service Canada office or any public Internet access site You should mail the medical certificate to Service Canada or drop it off at any Service Canada office EI will not reimburse you for any costs associated with getting the medical certificate completed If you have a paper Record of Employment that your employer did not submit electronically, you should either mail it to Service Canada or drop if off at a Service Canada office Local Service Canada offices can be found on the Service Canada website: Your local Member of Parliament (MP) may be a source of information Contact information If you would like more information, contact: (Service Canada) ~ 11 ~

12 EMPLOYMENT INSURANCE BENEFITS: COMPASSIONATE CARE BENEFITS Program Overview Employment Insurance Benefits (EI Benefits) is a federal program, administered through Human Resources and Skills Development Canada, and legislated through the Employment Insurance Act. EI is a contribution-tested program (like CPP-Disability); therefore, the program is only available to those who have worked the required number of insurable hours during the relevant qualifying period. Your eligibility or entitlement is not impacted by any of your liquid or acquired assets. There are two EI Benefits Programs: Regular Benefits for those who are able to work and Special Benefits, including Sickness Benefits, Compassionate Care Benefits, Maternity/Parental Benefits and Benefits for Parents of Critically Ill or Injured Children. EI Special Benefits are available to self-employed individuals who enter into the Employment Insurance Measure for Self-Employed Persons. This fact sheet will focus on Compassionate Care Benefits. This program allows for an individual to take time off from work in order to provide supportive care to an ill family member. Qualifying Criteria In order to be eligible, your earnings must have decreased by more than 40% and you must have more than 600 insurable hours of employment in the last 52 weeks or since the start of your last claim (this period is called the qualifying period). Your absence from work must be due to having to provide care or support to a family member. The definition of care includes providing psychological or emotional support, arranging for care by a third party or directly providing or participating in the care. The family member you are caring for can include: your child or a child of your spouse, husband/wife/common law partner, father/mother or father s wife/mother s husband if your parent has remarried, siblings or their spouse, son/daughter-in-law, father/mother-in-law, brother/sister-in-law, aunt/uncle or niece/nephew, grandparents and grandchildren. You can also receive Compassionate Care Benefits to care for a person who considers you like a family member, such as a close friend or neighbour. In this case, a signed Compassionate Care Benefits Attestation would be required from the ill person. You are eligible to care for a family member who is located in another province or outside of Canada. ~ 12 ~

13 Compassionate Care Benefits are available to self-employed individuals who enter into the Employment Insurance Measure for Self-Employed Persons. Definition of Disability Under the legislation, the family member you will be caring for must be gravely ill and be at significant risk of death within the next 26 weeks. With your application for EI Benefits (including a regular application and Record of Employment), you will need to provide a medical certificate completed by the medical doctor or other medical practitioner authorized to treat the gravely ill family member. An Authorization to Release a Medical Certificate completed and signed by the gravely ill person must be submitted at the same time. Application Process All applications for EI are completed online. Visit the Service Canada website at From the Online Services and Forms menu on the right hand side of the page, click on Apply for Employment Insurance Benefits. Your application for EI Benefits will include the online application, the medical certificate, the Authorization to Release a Medical Certificate and your Record of Employment (usually filed electronically by your employer). You should apply as soon as you stop working. Delays in filing your application beyond four weeks after your last day of work may result in loss of benefits. The first two weeks following the date you left work is considered a waiting period and no benefits are paid for this period. It typically takes 6 to 8 weeks to receive your first payment. Payment Amount The basic payment is 55% of your insurable earnings up to a maximum of $514/week (2014 rate). Money you receive from certain other sources, such as earned income, may be deducted dollar for dollar from your EI payment. The Compassionate Care Benefit is paid for a maximum of 6 weeks. The 6 weeks can be shared among qualifying family members and can be taken at the same or different times. Only one family member needs to serve the two week waiting period if the six weeks are shared. Your benefit is taxable income. ~ 13 ~

14 Working while on EI Compassionate Care Benefits Under current EI rules, you can work a certain amount while you are receiving EI Compassionate Care Benefits without a deduction from your benefits. Effective August 5, 2012 until August 1, 2015, a new pilot project is in place which changes the way earnings are deducted. Under the Working While on Claim (WWC) pilot project, once you have served the waiting period, if your earnings are 90% or less of your weekly earnings that were used to calculate your benefit rate, your benefits will be reduced at a rate of 50% of your earnings each week. Any earnings that exceed this 90% threshold will be deducted dollar for dollar from your benefits. Transferring from Compassionate Care Benefits to Sickness Benefits If you become too ill while on Compassionate Care Benefits to care for someone else, you can switch to EI Sickness Benefits. If you become ill right at the end of your Compassionate Care Benefits, you can convert your claim into a Sickness Benefits claim by filing a medical certificate. If you return to work after collecting Compassionate Care benefits, and then become ill, you can apply for Sickness Benefits without having to work the requisite 600 hours as long as you apply within one year from the start of the Compassionate Care Benefits claim. The claim cannot extend beyond the oneyear mark. For example, if your Compassionate Care Benefits Claim began on January 1, 2014, you can apply for Sickness Benefits at any point during However, your claim will terminate on December 31, 2014 regardless of whether you have collected the full amount of EI Sickness Benefits. In cases where you are switching between different types of EI benefits, it is advisable to contact Service Canada to discuss your particular circumstances. Leaving the Country While Collecting Compassionate Care Benefits You must advise Service Canada if you intend to leave Canada, prior to leaving the country. You can collect Compassionate Benefits outside of Canada only if you are going to another country to care for the ill family member. If you go to another country for any other reason, you will not be entitled to benefits for the period that you are outside of the country and your benefit period will not be extended by the length of time that you are outside Canada. ~ 14 ~

15 Other Benefits Regular Benefits, Sickness Benefits, Maternity, Parental Benefits and Benefits for Parents of Critically Ill or Injured Children (and the potential to transfer between some programs). Compassionate Care, Sickness Benefits, Maternity/Parental Benefits and Benefits for Parents of Critically Ill or Injured Children are available to self-employed individuals who enter into the Employment Insurance Measure for Self-Employed Persons. Under the Employment Standards Code (Alberta), eligible employees who leave work to become a caregiver for a gravely ill family member are entitled to up to eight weeks of unpaid, job-protected leave of absence. It is also advisable to check with the employers policies and procedures for specific policies on Compassionate Care Leave. Tips/Suggestions If you do not have access to a computer, you can apply online at any Service Canada office or any public Internet access site You should mail the medical certificate to Service Canada or drop it off at any Service Canada office EI will not reimburse you for any costs associated with getting the medical certificate completed If you have a paper Record of Employment that your employer did not submit electronically, you should either mail it to Service Canada or drop it off at a Service Canada office Local Service Canada offices can be found on the Service Canada website: Your Member of Parliament (MP) may be a source of information Contact information If you would like more information, contact: (Service Canada) ~ 15 ~

16 EMPLOYMENT INSURANCE BENEFITS: MATERNITY AND PARENTAL BENEFITS Program Overview Employment Insurance Benefits (EI Benefits) is a federal program, administered through Human Resources and Skills Development Canada, and legislated through the Employment Insurance Act. EI is a contribution-tested program (like CPP-Disability); therefore, the program is only available to those who have worked the required number of insurable hours during the relevant qualifying period. Your eligibility or entitlement is not impacted by any of your liquid or acquired assets. There are two EI Benefits Programs: Regular Benefits for those who are able to work and Special Benefits, including Sickness Benefits, Compassionate Care Benefits, Maternity/ Parental Benefits and Benefits for Parents of Critically Ill or Injured Children. EI Special Benefits are available to self-employed individuals who enter into the Employment Insurance Measure for Self-Employed Persons. This fact sheet will focus on Maternity and Parental Benefits. Qualifying Criteria In order to be eligible for EI Maternity or Parental Benefits, you must have your earnings decrease by more than 40% and have worked and contributed to Employment Insurance for a minimum of 600 hours in the last 52 weeks or since your last claim (this period is called the qualifying period). EI Maternity Benefits are offered to biological mothers, including surrogate mothers, who cannot work because they are pregnant or have recently given birth. EI Parental Benefits are offered to parents who are caring for a newborn or newly adopted child. Application Process All applications for EI are completed online. Visit their website gc.ca. From the Online Services and Forms menu on the right hand side of the page, click on Apply for Employment Insurance Benefits. Your application for EI Benefits will include a general application, an application for Special Benefits, and a Record of ~ 16 ~

17 Employment from your employer (usually filed electronically by your employer). To receive Maternity Benefits, you need to prove your pregnancy by signing a statement declaring the expected due date or the actual date of birth. To receive Parental Benefits, you must sign a statement declaring the newborn s date of birth or placement. You should apply as soon as you stop working. Delays in filing your application beyond four weeks after your last day of work may result in loss of benefits. EI Benefits will likely start four weeks after applying. The first two weeks following the date you left work is considered a waiting period and no benefits are paid for this period. It typically takes at least 6 to 8 weeks to receive payment. Payment Amount The basic benefit is 55% of your average earnings up to a maximum of $514/week (2014 rate). A maximum of 15 weeks of EI maternity benefits is available. The 15 weeks can start as early as eight weeks before the expected date of birth, and can end as late as 17 weeks after the actual date of birth. A maximum of 35 weeks of Parental Benefits is available and can be shared between the two parents. If shared between parents, the Parental Benefits can be collected at the same or different times. The 35 weeks can be divided however the parents choose. Working While Collecting EI Maternity and Parental Benefits If you work while receiving EI Maternity Benefits, the entire amount you earn will be deducted dollar for dollar from your benefits. Under current EI rules, you can work a certain amount while you are receiving EI Parental Benefits without a deduction from your benefits. Effective August 5, 2012 until August 1, 2015, a new pilot project is in place which affects the way earnings are deducted. Under the Working While on Claim (WWC) pilot project, once you have served the waiting period, if your earnings are 90% or less of your weekly earnings that were used to calculate your benefit rate, your benefits will be reduced at a rate of 50% of your earnings each week. Any earnings that exceed this 90% threshold will be deducted dollar for dollar from your benefits. EI payments are taxable. You do not have to submit EI reports while you are receiving maternity and parental benefits, unless you are working. ~ 17 ~

18 Combining Maternity/Parental Benefits with Sickness Benefits In certain circumstances, Maternity and Parental Benefits can be combined with Sickness Benefits, to a maximum of 65 weeks (15 weeks Maternity Benefits, 35 weeks Parental Benefits and 15 weeks Sickness Benefits). If you become ill while you are pregnant and need to stop working, you can collect EI Sickness Benefits until the baby is born. You would then convert your claim to EI Maternity Benefits. If you become ill while you are collecting Maternity or Parental Benefits, you can convert your claim to an EI Sickness Benefits claim. EI Sickness Benefits are available for up to a maximum of 15 weeks. If you return to work after maternity/parental leave and then become ill, you will have to work another 600 hours in order to make a claim for EI Sickness Benefits. In cases where you are switching between different types of EI benefits, it is advisable to contact Service Canada to discuss your particular circumstances. There will also be administration delays. Other Benefits Available through Employment Insurance Regular Benefits, Compassionate Care Benefits, Sickness Benefits and Benefits for Parents of Critically Ill or Injured Children (and the potential to transfer between some programs). Sickness Benefits, Compassionate Care Benefits, Maternity Benefits, Parental Benefits and Benefits for Parents of Critically Ill or Injured Children are available to self-employed individuals who enter into the Employment Insurance Measure for Self-Employed Persons. Some employment-related services. ~ 18 ~

19 Tips/Suggestions If you do not have access to a computer, you can apply online at any Service Canada office or any public Internet access site If you have a paper Record of Employment that your employer did not submit electronically, you should either mail it to Service Canada or drop if off at a Service Canada office Local Service Canada offices can be found on the Service Canada website: Your local Member of Parliament (MP) may be a source of information Contact information If you would like more information, contact: (Service Canada) ~ 19 ~

20 EMPLOYMENT INSURANCE BENEFITS: PARENTS OF CRITICALLY ILL CHILDREN Program Overview Employment Insurance Benefits (EI Benefits) is a federal program, administered through Human Resources and Skills Development Canada, and legislated through the Employment Insurance Act. Like CPP-Disability, this is a contribution-tested program, meaning that the program is only available to those who have worked the required number of insurable hours during the relevant qualifying period. Your eligibility or entitlement is not impacted by any of your liquid or acquired assets. There are two EI Benefits Programs: Regular Benefits for those who are able to work and Special Benefits, including Sickness Benefits, Compassionate Care Benefits, Maternity/ Parental Benefits and Benefits for Parents of Critically Ill or Injured Children. EI Special Benefits are available to self-employed individuals who enter into the Employment Insurance Measure for Self-Employed Persons. This fact sheet will focus on Benefits for Parents of Critically Ill or Injured Children, a program launched by the Federal Government in June 2013 that provides benefits to eligible parents caring for a child with a critical illness or injury. Qualifying Criteria In order to be eligible, you must have more than 600 insurable hours of employment in the last 52 weeks or since the start of your last claim (this period is called the qualifying period). Your absence from work must be due to having to provide care or support to a child (under 18 years of age) with a critical illness or injury. Benefits for Parents of Critically Ill Children are available to self-employed individuals who enter into the Employment Insurance Measure for Self-Employed Persons. ~ 20 ~

21 Definition of Disability For the purposes of this EI benefit, a critically ill child is one whose baseline state of health has changed significantly and whose life is at risk as a result of an illness or injury. In addition, the child must require the care or support of his/her parents because of his/her health. With your application for EI Benefits, you will need to provide a medical certificate completed and signed by the pediatrician or medical specialist who is treating the child. An Authorization to Release a Medical Certificate completed and signed by the parent must be submitted at the same time. Application Process All applications for EI are completed online. Visit the Service Canada website at From the Online Services and Forms menu on the right hand side of the page, click on Apply for Employment Insurance Benefits. Your application for EI Benefits will include the online application, the medical certificate, the Authorization to Release a Medical Certificate and your Record of Employment (usually filed electronically by your employer). You should apply as soon as you stop working. Delays in filing your application beyond four weeks after your last day of work may result in loss of benefits. The first two weeks following the date you left work is considered a waiting period and no benefits are paid for this period. It typically takes 6 to 8 weeks to receive your first payment. Payment Amount The basic payment is 55% of your insurable earnings up to a maximum of $514/week (2014 rate). Money you receive from certain other sources, such as earned income, may be deducted dollar for dollar from your EI payment. The benefit will be paid for a maximum of 35 weeks, and the 35 weeks can be shared between parents within a 52-week period. If the benefits are shared, they can be collected at the same or different times. Only one family member needs to serve the two week waiting period if the 35 weeks are shared. Your benefit is taxable income. Working While on EI Benefits for Parents of Critically Ill Children Under current EI rules, you can work a certain amount while you are receiving EI Benefits for Parents of Critically Ill Children without a deduction from your benefits. Effective August 5, 2012 until August 1, 2015, a new pilot project is in place which changes the way earnings are deducted. Under the Working While on Claim (WWC) pilot project, once you have served the waiting period, if your earnings are 90% or ~ 21 ~

22 less of your weekly earnings that were used to calculate your benefit rate, your benefits will be reduced at a rate of 50% of your earnings each week. Any earnings that exceed this 90% threshold will be deducted dollar for dollar from your benefits. Other Benefits Regular Benefits, Sickness Benefits, Compassionate Care Benefits, Maternity and Parental Benefits (and the potential to transfer between some programs). Compassionate Care, Sickness Benefits, Maternity/Parental Benefits and Benefits for Parents of Critically Ill or Injured Children are available to self-employed individuals who enter into the Employment Insurance Measure for Self-Employed Persons. Amendments to the Employment Standards Act have been introduced which, if enacted, will allow employees who have been employed for at least six consecutive months to take up to 37 weeks of unpaid, job-protected leave to provide care or support to a critically ill child of the employee. Tips/Suggestions If you do not have access to a computer, you can apply online at any Service Canada office or any public Internet access site You should mail the medical certificate to Service Canada or drop it off at any Service Canada office EI will not reimburse you for any costs associated with getting the medical certificate completed If you have a paper Record of Employment that your employer did not submit electronically, you should either mail it to Service Canada or drop it off at a Service Canada office Local Service Canada offices can be found on the Service Canada website: Your Member of Parliament (MP) may be a source of information Contact information If you would like more information, contact: (Service Canada) ~ 22 ~

23 EMPLOYMENT INSURANCE BENEFITS: SELF-EMPLOYED PERSONS Program Overview Employment Insurance Benefits is a federal program, administered through Human Resources and Skills Development Canada, and legislated through the Employment Insurance Act. Since January 2011, self-employed Canadians have been able to access Employment Insurance (EI) Special Benefits (Maternity, Parental, Sickness and Compassionate Care Benefits, as well as benefits for Parents of Critically Ill or Injured Children) on a voluntary basis under the Employment Insurance Measure for Self- Employed Persons. Qualifying Criteria You may be eligible to access EI special benefits if you: Are a self-employed person; and Are a Canadian citizen or a permanent resident of Canada; and Have entered into an agreement with the Canada Employment Insurance Commission (the Commission) through Service Canada (see below). Agreement to Participate To enter into an agreement with the Commission, you have to register online using the My Service Canada Account function on the Service Canada website ( After you enter into the agreement, you will receive a confirmation number that you should keep for your records. You will also receive a letter in the mail confirming your registration. Once you enter into the agreement, you will have 60 days to reconsider your decision. If you choose to withdraw from the EI Measure for Self-Employed People within this 60-day period, you will not have to pay any premiums. Once the 60-day grace period has elapsed, you must start to pay EI premiums and your participation lasts indefinitely, unless you terminate it. ~ 23 ~

24 It is important to note that you can only terminate your agreement and stop paying premiums if you have never received EI special benefits as a self-employed person. If you make a claim and receive benefits, you cannot terminate your agreement as long as you continue to have self-employment income. In other words, after you receive EI special benefits, you have to continue to pay EI premiums on your self-employment income for the entire duration of your self-employment career, regardless of any change in the nature of your self-employment. EI Premiums Beginning in the year you register to participate in the measure, your EI premiums will be calculated on your income tax return for that year. For example, if you register in 2014 to participate in this program, premiums for 2014 will be calculated on your 2014 income tax and benefit return and will be payable by April 30, When you register for the program, EI premiums will be payable on your selfemployment income for the entire year, regardless of the date you register. For example, whether you register in June 2014 or December 2014, you will pay EI premiums on your self-employment income for the entire year of EI premiums are payable on the amount of your earnings from self-employment. The 2014 EI premium rate for self-employed people is $1.88 per $100 of earnings, which is the same rate that employees pay. There is an annual maximum amount of earnings on which premiums must be paid ($48,600 for 2014). Therefore, the maximum EI premium you would have to pay for the 2014 calendar year is $ ($48,600 x.188 = $913.68). Making a Claim for Special Benefits You have to wait 12 months from the date of your confirmed registration before applying for EI special benefits. See our Fact Sheets on Sickness Benefits, Compassionate Care Benefits, Maternity and Parental Benefits and Benefits for Parents of Critically Ill or Injured Children for information on how to apply for these EI Special Benefits. ~ 24 ~

25 Payment Amount The basic payment is 55% of your average weekly earnings from the calendar year before the year you submit an EI claim, up to a maximum weekly benefit of $514 (2014 rate). The length of time for which you will receive the benefit will depend on the type of special benefits you have applied for. For example, EI Sickness Benefits are payable for a maximum of 15 weeks and Compassionate Care Benefits are payable for a maximum of 6 weeks. Your benefit is taxable income. Contact information If you would like more information, contact: (Service Canada) This resource sheet is for information purposes only. Wellspring does not assume liability for out-of-date or missing information. It is advisable for individuals to contact representatives of the relevant program to ensure up-to-date and accurate information. Resource sheets on many other relevant financial topics are available. March 2014 ~ 25 ~