What is Employment Insurance? 2024 Useful Guide

by | Jun 3, 2022

Let’s face it, unemployment, taxes, and insurance aren’t the fascinating subjects in the world. We have some exciting news for you! In Canada, there is a program called Employment Insurance (EI) that provides temporary financial support to those who have just lost their jobs.

This article will discuss all you need about employment insurance (EI). Whether you’re an employer or an employee, we have answers to your basic EI queries.

Additionally, if you’re having trouble keeping track of your bookkeeping duties, or want someone else to handle the hassle, give Yogi & Associates a call

1. What is Employment Insurance (EI)?

It is a benefit that the Canadian Government offers to people who have recently lost their jobs. Or are unable to work due to particular circumstances, such as illness, pregnancy, and caring for a family member. It serves as a source of temporary income. And offers help to the unemployed for job-seeking.

2. Six Types of Employment Insurance and Eligibility Criteria

Regular Benefits

  • An individual must be unpaid for a minimum of one week (7 days).
  • Must have put in the required number of hours each week for the region the person lives in. The hours often depend on the local unemployment rate.
  • Must have made contributions to the EI program. These contributions are deducted from one’s monthly wage as part of tax deductions.

“What exercise is to the body, employment is to the mind and morals.” -Henry David Thoreau

Special Benefits

  • Reduction of more than 40% in income.
  • Must have put in at least 600 hours of work over the previous 52 weeks or since you filed the last claim.

Sickness Benefits

  • Must have past medical history documents.
  • And offer proof that the illness has prevented them from working.

Maternity Benefits

You have to present paperwork about pregnancy-related information, such as delivery dates.

Parental Benefits

Those who have recently given birth to or adopted a child are eligible for parental benefits. And they must provide documentation to prove it.

Compassionate Care Benefits

Caregiving for an ill family member is included in compassionate care benefit. The family member must be on the list of eligible family members. And be at risk of passing away within 26 weeks to qualify for the benefits.

Point to Ponder!

Employers provide ROEs to give information about your employment history. CRA utilizes this data to determine whether you qualify for EI benefits. And how much will you get? A record of Employment shows information about a person’s employment history. Thus, ROE determines if a person is eligible for EI or not.

For more information about Record of Employment (ROE), please view our blog, 2022 Comprehensive Guide on Record of Employment.

3. When Do You Not Qualify For EI?

The following are some of the most significant situations that might disqualify someone for EI:

  • Individuals will not be eligible for employment insurance if they voluntarily leave their jobs. In such cases, they must provide supporting evidence for a good reason.
  • If someone loses a job, especially for misconduct, they will not qualify for EI.
  • The person is ineligible for insurance if they are unemployed due to taking part in a labor dispute.
  • Someone who has previously paid into the EI program while working cannot qualify for EI.

4. How Much Can You Receive Through Employment Insurance?

The basic rate used to determine Employment Insurance (EI) benefits for the majority of persons is up to a maximum of 55% of their average insurable weekly earnings. The maximum yearly insurable earnings amount is $60,300 as of January 1, 2022. This means that the most you might get each week is $638.

5. Keep Your Books Updated!

Bookkeeping sometimes comes last on the list of priorities. This causes receipts and invoices to accumulate over time in a shoebox. And soon turn into a difficult task for your company. At Yogi & Associates, we have a group of committed, knowledgeable bookkeepers. They can relieve you of the data load input while delivering accurate financial reports monthly. Get in touch with us to find out how we can help.

Final Words!

Employment Insurance is a crucial element for a sustainable economy. It has helped hundreds of Canadians by offering significant income security. You can also take advantage of this opportunity by submitting an online application through the official Service Canada website. Furthermore, Yogi & Associates will help you in any way they can. Also, if you are looking for payroll services at reasonable prices, feel free to contact us!

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