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Employment Insurance Act (S.C. 1996, c. 23)

Act current to 2019-11-19 and last amended on 2019-06-21. Previous Versions

PART IVInsurable Earnings and Collection of Premiums (continued)

Rulings and Appeals (continued)

Marginal note:Determination of questions

 If a question specified in section 90 arises in the consideration of a claim for benefits, a ruling must be made by an authorized officer of the Canada Revenue Agency, as set out in that section.

  • 2012, c. 19, s. 246

Marginal note:Appeal of rulings

 An appeal to the Minister from a ruling may be made by the Commission at any time and by any other person concerned within 90 days after the person is notified of the ruling.

Marginal note:Appeal of assessments

 An employer who has been assessed under section 85 may appeal to the Minister for a reconsideration of the assessment, either as to whether an amount should be assessed as payable or as to the amount assessed, within 90 days after being notified of the assessment.

Marginal note:Notification of appeal

  •  (1) The Minister shall notify any person who may be affected by an appeal of the Minister’s intention to decide the appeal, including the Commission in the case of an appeal of a ruling, and shall give them an opportunity to provide information and to make representations to protect their interests, as the circumstances require.

  • Marginal note:Where appeal to be sent

    (2) An appeal shall be addressed to the Assistant Director of Appeals in a Tax Services Office of the Canada Revenue Agency and delivered or mailed to that office.

  • Marginal note:Decision

    (3) The Minister shall decide the appeal within a reasonable time after receiving it and shall notify the affected persons of the decision.

  • Marginal note:Notification

    (4) If the Minister is required to notify a person who may be or is affected by an appeal, the Minister may have the person notified in such manner as the Minister considers adequate.

  • 1996, c. 23, s. 93
  • 1999, c. 17, s. 135
  • 2005, c. 38, s. 138

Marginal note:Minister’s authority not restricted

 Nothing in sections 90 to 93 restricts the authority of the Minister to make a decision under this Part or Part VII on the Minister’s own initiative or to make an assessment after the date mentioned in subsection 90(2).

Overpayments and Refunds

Marginal note:Employee overpayment

 The total amount of any employee’s premiums deducted during a year from the insurable earnings of a person in excess of the maximum yearly insurable earnings is an overpayment made by the person.

Marginal note:Refund — overpayments

  •  (1) If a person has made an overpayment on account of their employee’s premiums, or has made a payment of employee’s premiums during a year when the person was not employed in insurable employment, the Minister shall refund to the person the amount of the overpayment or payment if the person applies in writing to the Minister within three years after the end of that year.

  • Marginal note:Refund — appeal decision

    (2) If an amount on account of a premium has been deducted from the remuneration of a person during a year, or has been paid by an employer with respect to a person employed by the employer during a year, and by a decision on an appeal under section 91, 92 or 103 it is decided that the amount so deducted or paid exceeds the amount required to be deducted or paid, or should not have been deducted or paid, the Minister shall refund the excess amount or the amount that should not have been deducted or paid if the person or the employer applies in writing to the Minister within 30 days after the decision is communicated to the person or employer, as the case may be.

  • Marginal note:Refund — application to Minister

    (3) Notwithstanding anything in this Part, if a person or employer applies to and satisfies the Minister that, for any year, the amount deducted from the remuneration of the person, or paid by the employer with respect to a person, as the case may be, is in excess of the amount required to be deducted or paid for the year, or should not have been deducted or paid, the Minister may refund the excess amount or the amount that should not have been deducted or paid if the application is made within three years after the end of that year.

  • Marginal note:Refund — section 82.01 amounts

    (3.1) If an amount remitted by an employer is deemed under section 82.01 not to have been deducted, the Minister may refund that amount to the employer if the employer applies to the Minister for the refund within three years after the end of the year for which the amount was remitted.

  • Marginal note:Refund — insurable earnings up to $2,000

    (4) If a person has insurable earnings of not more than $2,000 in a year, the Minister shall refund to the person the aggregate of all amounts deducted as required from the insurable earnings, whether by one or more employers, on account of the person’s employee’s premiums for that year.

  • Marginal note:No refund

    (4.1) No refund shall be made to a person under subsection (4) if the person is also a self-employed person to whom Part VII.1 applies and the person’s total earnings from insurable employment and from self-employment calculated in accordance with that Part are more than $2,000 in a year.

  • Marginal note:Refund — insurable earnings over $2,000

    (5) If a person who is not a self-employed person to whom Part VII.1 applies has insurable earnings of more than $2,000 in a year, but the insurable earnings minus the aggregate of all deducted amounts mentioned in subsection (4) are less than $2,000, the Minister shall refund to the person an amount calculated in accordance with the following formula if that amount is more than $1:

    $2,000 – (IE – P)

    where

    IE
    is the person’s insurable earnings in the year; and
    P
    is the aggregate of all deducted amounts mentioned in subsection (4).
  • Marginal note:Refund — combined earnings over $2,000

    (5.1) If a person has insurable earnings and is also a self-employed person to whom Part VII.1 applies and the person’s total earnings from insurable employment and from self-employment calculated under that Part are more than $2,000 in a year, but the total earnings minus the aggregate of all deducted amounts mentioned in subsection (4) and the premiums payable under section 152.21 are less than $2,000, the Minister shall refund to the person the lesser of the following amounts if that amount is more than $1:

    • (a) the aggregate of all deducted amounts mentioned in subsection (4), and

    • (b) the amount calculated in accordance with the following formula

      $2,000 – (TE –TP)

      where

      TE
      is the person’s total earnings from insurable employment and from self-employment calculated under Part VII.1; and
      TP
      is the aggregate of all deducted amounts mentioned in subsection (4) and the premiums payable under section 152.21.
  • Marginal note:Temporary measure — employer’s premium refund for 1997

    (6) If an employer’s premium is less than $60,000 during 1996, the Minister shall refund to the employer a portion of the premium for 1997 determined by the following formula if that amount is more than $1:

    P2 - (P1 + $250)

    where

    P1
    is the amount of the employer’s premium in 1996; and
    P2
    is the amount of the employer’s premium in 1997.
  • Marginal note:Temporary measure — employer’s premium refund for 1998

    (7) If an employer’s premium is less than $60,000 during 1996, the Minister shall refund to the employer a portion of the premium for 1998 determined by the following formula if that amount is more than $1:

    [P2 - (P1 + $250)]/4

    where

    P1
    is the amount of the employer’s premium in 1996; and
    P2
    is the amount of the employer’s premium in 1998.
  • Marginal note:P1 can be equal to zero

    (7.1) For the purposes of subsections (6) and (7), P1 is equal to zero where a person was not required to pay an employer’s premium in 1996.

  • Marginal note:Maximum refund

    (8) A refund under subsection (6) or (7) shall not exceed

    • (a) $10,000, if the amount of the employer’s premium in 1996 is less than $50,000; and

    • (b) $60,000 minus the amount of the employer’s premium in 1996, if that amount is $50,000 or more, but less than $60,000.

  • Marginal note:Interpretation

    (8.1) For the purposes of subsections (6) to (8), a reference to an employer’s premium in 1996 includes the employer’s premium required to be paid that year under the Unemployment Insurance Act.

  • Marginal note:Employer’s premium refund for 1999

    (8.2) With respect to 1999, the Minister shall refund to the employer the amount determined by the following formula if that amount is more than $1:

    (E2 – E1) × P1999

    where

    E1
    is the total of all insurable earnings paid in 1998 by the employer, for which premiums were deductible, in respect of employees who were 18 years of age or older but younger than 25 at any time during 1998;
    E2
    is the total of all insurable earnings paid in 1999 by the employer, for which premiums were deductible, in respect of employees who were 18 years of age or older but younger than 25 at any time during 1999; and
    P1999
    is 1.4 times the premium rate for 1999.
  • Marginal note:Employer’s premium refund for 2000

    (8.3) With respect to 2000, the Minister shall refund to the employer the amount determined by the following formula if that amount is more than $1:

    (E2 – E1) × P2000

    where

    E1
    is the total of all insurable earnings paid in 1998 by the employer, for which premiums were deductible, in respect of employees who were 18 years of age or older but younger than 25 at any time during 1998;
    E2
    is the total of all insurable earnings paid in 2000 by the employer, for which premiums were deductible, in respect of employees who were 18 years of age or older but younger than 25 at any time during 2000; and
    P2000
    is 1.4 times the premium rate for 2000.
  • Marginal note:Reduction or elimination of refund

    (8.4) Where it is determined that an employer who has applied for or received a refund under subsection (8.2) or (8.3) has unduly terminated the employment of an employee or changed the conditions of employment of an employee in order to obtain or to increase the refund that would otherwise be payable to the employer, the Minister shall eliminate the refund, or reduce it by the sum the Minister considers appropriate in the circumstances.

  • Marginal note:Notice

    (8.5) If the Minister eliminates or reduces a refund under subsection (8.4), the Minister shall notify the employer, as if the Minister were issuing a notice of assessment, that the employer is not entitled to the refund or that the refund has been reduced by the sum specified in the notice.

  • Marginal note:Reliance on decisions

    (8.6) For the purpose of subsection (8.4), an employer shall be determined to have unduly terminated the employment of an employee or changed the conditions of employment of an employee in order to obtain or to increase the refund that would otherwise be payable to the employer if an order, decision or ruling of any competent body has so established.

  • Marginal note:Temporary measure — small business refund 2011

    (8.7) If an employer’s premium is $10,000 or less for 2010, the Minister shall refund to the employer a portion of the premium for 2011 determined by the following formula if that amount is more than $2:

    P2 – P1

    where

    P1
    is the amount of the employer’s premium in 2010; and
    P2
    is the amount of the employer’s premium in 2011.
  • Marginal note:P1 can be equal to zero

    (8.8) For the purposes of subsection (8.7), P1 is equal to zero if a person was not required to pay an employer’s premium in 2010.

  • Marginal note:Maximum refund

    (8.9) A refund under subsection (8.7) shall not exceed $1,000.

  • Marginal note:Temporary measure — small business refund 2012

    (8.91) If an employer’s premium is $10,000 or less for 2011, the Minister shall refund to the employer a portion of the premium for 2012 determined by the following formula if that amount is more than $2:

    P2 – P1

    where

    P1
    is the amount of the employer’s premium in 2011; and
    P2
    is the amount of the employer’s premium in 2012.
  • Marginal note:P1 can equal zero

    (8.92) For the purposes of subsection (8.91), P1 is equal to zero if a person was not required to pay an employer’s premium in 2011.

  • Marginal note:Maximum refund

    (8.93) A refund under subsection (8.91) shall not exceed $1,000.

  • Marginal note:Temporary measure  —  small business refund 2013

    (8.94) If an employer’s premium is $15,000 or less for 2012, the Minister shall refund to the employer a portion of the premium for 2013 determined by the following formula if that amount is more than $2:

    P2 – P1

    where

    P1 
    is the amount of the employer’s premium in 2012; and
    P2 
    is the amount of the employer’s premium in 2013.
  • Marginal note:P1 can equal zero

    (8.95) For the purposes of subsection (8.94), P1 is equal to zero if a person was not required to pay an employer’s premium in 2012.

  • Marginal note:Maximum refund

    (8.96) A refund under subsection (8.94) shall not exceed $1,000.

  • Marginal note:Temporary measure  — small business refund 2015

    (8.97) If an employer’s premium is $15,000 or less for 2015, the Minister shall refund to the employer a portion of the premium for 2015 determined by the following formula if that amount is more than $2:

    E × 0.28% × 1.4

    where

    E 
    is the total of all insurable earnings paid in 2015 by the employer for which premiums were deductible.
  • Marginal note:Temporary measure  — small business refund 2016

    (8.98) If an employer’s premium is $15,000 or less for 2016, the Minister shall refund to the employer a portion of the premium for 2016 determined by the following formula if that amount is more than $2:

    E × 0.28% × 1.4

    where

    E 
    is the total of all insurable earnings paid in 2016 by the employer for which premiums were deductible.
  • Marginal note:Associated employers

    (9) If at any time during a year for which a refund is sought two or more employers are associated, as defined by the regulations, they shall be considered a single employer for the purposes of subsections (6) to (8.4) and any refund shall be allocated to them in the prescribed manner.

  • Marginal note:Application for refund

    (10) A refund under this section is payable only if an application is made in writing to the Minister within three years after the end of the year for which the premiums were deducted or required to be paid.

  • Marginal note:Recovery

    (11) If a person applies under this section for a refund and, whether on the basis of incorrect or incomplete information contained in the application or otherwise, the Minister has

    • (a) refunded an amount to the person, or

    • (b) applied an amount to a liability of the person to Her Majesty in right of Canada,

    in excess of the amount that should have been refunded or applied, the excess amount may be recovered at any time from the person as a debt due to Her Majesty.

  • Marginal note:Application of refund to other debts

    (12) If a person is liable or about to become liable to make a payment to Her Majesty in right of Canada and a refund under this section is otherwise payable to the person, the Minister may apply the amount of the refund to that liability and notify the person of that action instead of making the refund.

  • Marginal note:Interest

    (13) If an amount for an overpayment is refunded or applied under this Act to any other liability, interest shall be paid or applied on the amount at a prescribed annual rate under the circumstances and for the period or periods determined as prescribed, except that no interest shall be paid or applied if the amount of the interest is less than $1.

  • Marginal note:No interest payable

    (13.1) Despite subsection (13), no interest shall be paid on a refund payable under subsection (3.1), (8.7), (8.91), (8.94), (8.97) or (8.98) or on the amount of a refund payable under any of those subsections that is applied under this Act to any other liability.

  • 1996, c. 23, s. 96
  • 1997, c. 26, s. 90
  • 1998, c. 21, s. 104
  • 2011, c. 24, s. 160
  • 2012, c. 19, s. 615, c. 31, s. 307
  • 2013, c. 40, s. 135
  • 2014, c. 39, s. 225
  • 2019, c. 29, s. 51
 
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