What is the Employment Insurance Premium Reduction Program?
The Canadian government grants reduced Employment Insurance (EI) premium rates to employers if their employees are covered by a qualified short-term disability plan.
What are the requirements that the short-term disability plan must meet?
- provide at least 15 weeks of benefits for short-term disability;
- match or exceed the level of benefits provided under EI;
- pay benefit to employees within 14 days of illness or injury;
- be accessible to employees within three months of hiring;
- cover employees on a 24-hour-a-day basis.
http://www.servicecanada.gc.ca/eng/cs/prp/060.shtml
Why does Service Canada offer the Employment Insurance premium reduction to employers?
When employers offer a short-term disability plan that provides coverage which is similar to EI benefits, the employee may not have to claim EI sickness benefits or they may claim them for a shorter period of time.
How much money can I save?
Employers who qualify for this program can save up to $164.72 per employee each year.
How do I apply for an EI premium reduction?
You can apply for an EI premium reduction by completing an online form or by sending a written request on company letterhead.
http://www.servicecanada.gc.ca/eng/cs/prp/0200/0200_030.shtml
What do I need to do once I have qualified for an EI premium reduction?
- Determine how the EI premium reduction will affect payroll
- Arrange to return the employees’ portion of the savings (5/12 of the total savings must be passed on to employees)
- Notify Service Canada if you change or cancel your approved planhttp://www.servicecanada.gc.ca/eng/cs/prp/0200_000.shtml