Employment Insurance (EI) Regular Benefits

Key Takeaways

Employment Insurance (EI) regular benefits are available to those who lose their jobs through no fault of their own.

EI benefits are taxable regardless of which type of benefits received. Federal and provincial taxes do apply.

It is crucial to apply for EI benefits as soon as the individual stops working.

You will not be eligible for EI if you voluntarily left your work or you were dismissed due to misconduct.

Employment Insurance (EI) provides regular benefits to individuals who lose their jobs through no fault of their own. Whether due to a shortage of work, seasonal layoffs, or mass layoffs, these benefits offer crucial financial support in between jobs. If you’re available and able to work but cannot find a job, EI can be a lifeline during uncertain times. It is crucial to apply for EI benefits as soon as you stop working, even if you haven’t received your record of employment yet. Let’s delve into the details of EI regular benefits and how they can help you.

To be eligible for Employment Insurance benefits, you must fall into one of the following categories (source: Canada.ca):

were employed in insurable employment. Insurable employment is defined as any type of work that is covered by Employment Insurance (EI) in Canada. Most jobs fall under this category if you’re an employee, regardless of whether you have a written contract or how you’re paid (salary, hourly, commission, etc.).

lost your job through no fault of your own. Example would be whether the jobsite is affected by flooding or wildfires.

have been without work and without pay for at least 7 consecutive days in the last 52 weeks.

have worked for the required number of insurable employment hours in the last 52 weeks or since the start of your last EI claim, whichever is shorter. As the insurable employment hours may change from year to year, you are advised to visit the Canada Revenue Agency (CRA) website for the most up-to-date information.

are ready, willing and capable of working each day.

are actively looking for work (you must keep a written record of employers you contact, including when you contacted them).

You will not be eligible for EI if you voluntarily left your work or you were dismissed due to misconduct. You are also ineligible for EI if you are directly participating in a labour dispute or a walk out. Individuals who are confined to jail are also not eligible for EI. The standard rate for calculating Employment Insurance (EI) benefits is 55% of an individual’s average insurable weekly earnings, capped at a maximum amount. For example, for the 2024 tax year which commences on January 1, the maximum yearly insurable earnings threshold is $63,200, allowing for a maximum weekly benefit of $668. The duration of the payments can range from 14 weeks up to the maximum of 45 weeks depending on:

unemployment rates in the area you reside in. The higher the unemployment rate, the duration of the payments will be longer; and

the number of insurable hours you have accumulated.

You may also be eligible for the EI Family Supplement, if you or your spouse receives Canada Child Benefit (CCB) and your net family income is below the prevailing threshold for the year. For example, for the 2024 tax year, the threshold is $25,921. Only one individual in a family may receive the supplement.

Employment Insurance benefit payments are taxable. Federal and provincial taxes will be deducted from the payments.

Once the EI benefits have been approved, you are required to file a bi-weekly report with Service Canada in order to continue receiving your benefits. The EI benefit payments will stop if for whatever reason the individual fails to submit the bi-weekly report. The reports must include:

Dates and hours worked in the reporting period, OR hours spent at school or in a training course and any training allowance received

Contact information of any employers

Total earnings before deductions such as taxes, CPP and EI premiums

Any other funds you may have received during the period such as tips

Indicate whether you were available for work

For further information please contact Taxtron Support at 416-491-0333 or visit www.taxtron.ca