Canada Employment insurance is a temporary insurance program offered by the government of Canada for eligible unemployed Canadians, to lessen the financial difficulties faced by them in the event of a job loss or an inability to work. The Canada employment insurance was initiated by the federal government through Canadian Pension Plan and Employment Insurance Act. According to this act, a certain percentage of the income of all employees is deducted and saved as employment insurance. The Canada Customs and Revenue Agency regulates the amount that is contributed towards employment insurance. According to Canada employment insurance the premiums/contributions are deducted from the pay and can be utilized under the following situations:
Employee loses his/her job
Has to take time off the job due to pregnancy or child care reasons
Unable to work due to an illness
If the amount that is deducted exceeds the yearly maximum set by the Canada Customs and Revenue agency, a refund can be obtained. Employment insurance benefits will be offered only when an employment is discontinued due to reasonable causes such as sexual or other harassment, discrimination because of race, color or religion, working conditions that endanger the employee's health or safety, discrimination because of membership to an association, organization or union of workers, excessive overtime or an employer's refusal to pay for overtime work and major changes in work duties.
The employment insurance companies provide the following benefits:
Their service should be prompt and courteous.
They provide advice on various programs and services available.
They help the customers in establishing the claims for benefits.
They help the customers in processing the claims within the stipulated time frame.
They also provide the customers accurate information about their claims.
Some Canada employment insurance company have beneficial schemes for full time employees like group health insurance, flexible benefit plans and deferred compensation plans. Some employment insurance coverage's also require the employers to provide health insurance coverage to the employees if the employees are on leave or if they are working on a part time basis. A person can submit his application online to find out more about his employment insurance benefits. It is essential for the person claiming for employment insurance to provide his personal identification like driver's license. The person claiming an employment insurance coverage should also submit complete bank information and medical certificates. The person who is applying for an employment insurance coverage should also provide the following information:
Social insurance number
Personal identification number
Adoption certificates if the person claiming for the employment insurance is planning to adopt children.
In the event of an employment loss or hiatus, an application (along with supporting documents) for the employment insurance benefits should be made. This application will be reviewed by the client service representative of Human Resources Development Canada (HRDC) and the benefits will be decided based on the claim documents submitted. If a negative decision is made, an appeal can be made to the Clerk of the Board of Referees within 30 days. Any income earned during the unemployment period should be promptly reported to the HRDC so that the necessary deductions can be made. Canada employment insurance benefit is taxable, and the tax is deducted from the benefits paycheck.
Unemployment Insurance:
The Social Security Act of 1935 brought unemployment insurance into effect and this insurance is funded by the state and the federal taxes paid by the employers. Unemployment insurance coverage pays temporary income to eligible employees who have lost their job. Though the unemployment insurance is governed by federal guidelines, each state is allowed to frame it's own rules within those guidelines. Unemployment compensation will be decided by the state officials based on the person's employment period and the wages that were earned while employed. A person does not become eligible for unemployment insurance coverage automatically, but should prove his/her eligibility. To be eligible for unemployment insurance benefits, the ex employee should meet the following requirements
The job loss should not be due to the employee's fault - employees who are fired may not be eligible, whereas those who were laid off have a good chance of being eligible
The person should be physically fit to be employed
Should be actively searching for the next employment
Should not be a full time student
Should not be self employed full time
Should not receive a severance pay at the time of application for unemployment benefits
Should not be receiving unemployment benefits from any other state
Most of the employees losing their jobs are entitled to collect their benefits from the unemployment office. The unemployment insurance coverage varies from state to state. The people claiming unemployment insurance should provide proof that they have been working for an employer and they should also provide detailed account of their wages. The wages earned by the claimants will determine their unemployment insurance. The people claiming unemployed insurance coverage should have earned at least the minimum amount of wages in order to qualify for the coverage. Unemployment pay offers very little gain, as it is taxable. The claimant's earning during his base period will determine the unemployment insurance coverage. The following employers are liable for the unemployment insurance coverage:
The government employers.
Certain employers belonging to the agricultural and the non-profit sector.
Employers belonging to the domestic sector.
The period for which a employee should be employed before being eligible for unemployment insurance benefits is called the base period, which differs from state to state. Similarly the employees should have earned a stipulated base pay so as to become eligible for unemployment pay. The unemployment paycheck will also depend on the wages earned by the employee while being employed. Generally all states provide only 26 installments of unemployment pay, which can be received over a predetermined period.
To receive unemployment insurance benefits, the unemployed person should submit a claim to the state unemployment office by filling out the relevant forms. This unemployment insurance claim could be filed through the Internet or the telephone. The pay will be available after a processing period of about a week. Since unemployment compensation is only a temporary benefit, the employee should be actively involved in job search.
