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Unemployment Insurance (Collection of Premiums) Regulations (C.R.C., c. 1575)

Regulations are current to 2022-06-20

Unemployment Insurance (Collection of Premiums) Regulations

C.R.C., c. 1575

EMPLOYMENT INSURANCE ACT

Regulations Respecting the Collection of Unemployment Insurance Premiums

Short Title

 These Regulations may be cited as the Unemployment Insurance (Collection of Premiums) Regulations.

Interpretation

  •  (1) In these Regulations,

    Act

    Act means the Unemployment Insurance Act; (Loi)

    Minister

    Minister means the Minister of National Revenue; (ministre)

    pay period

    pay period means the period in respect of which earnings or other remuneration are paid to or enjoyed by an insured person; (période de paie)

    pay week

    pay week means a period of seven consecutive days that ends, or any one of two or more such periods that are contiguous, the last of which ends, on the employer’s payroll ending date. (semaine de paie)

  • (2) For the purposes of Parts II and III of the Act and these Regulations, employer includes a person who pays or has paid remuneration or other earnings of an insured person for services performed in insurable employment.

  • SOR/93-534, s. 1
  • SOR/95-593, s. 1

PART IInsurable Earnings

Earnings from Insurable Employment

  •  (1) For the purposes of this Part, a person’s earnings from insurable employment means any remuneration, whether wholly or partly pecuniary, received or enjoyed by him, paid to him by his employer in respect of insurable employment except

    • (a) [Repealed, SOR/95-593, s. 2]

    • (b) the value of board, lodging and all other benefits received or enjoyed in a pay period in respect of the employment if no cash remuneration is paid by the employer in respect of the pay period;

    • (c) in the case of a clergyman, the value of lodging received or enjoyed by him in respect of his employment as a clergyman and provided by his diocese, parish or congregation; and

    • (d) any amount excluded as income pursuant to paragraph 6(1)(a) or (b) or subsection 6(6) or (16) of the Income Tax Act.

  • (2) For the purposes of subsection (1), where a person receives vocational training while in insurable employment, the remuneration of that person includes any allowance paid through his employer, in addition to the person’s remuneration, under a government training plan or by the Department of Veterans Affairs.

  • SOR/82-789, s. 1
  • SOR/85-235, s. 1
  • SOR/88-584, s. 1
  • SOR/92-734, s. 1
  • SOR/95-593, s. 2

Allocation of Earnings

  •  (1) Earnings from insurable employment shall be allocated as follows:

    • (a) remuneration, other than the remuneration referred to in subparagraph (b)(i), paid in respect of a pay period shall be allocated to the pay period in respect of which it is paid; and

    • (b) subject to subsection (2),

      • (i) overtime pay, retroactive pay increases, bonuses, gratuities, accumulated sick leave credits, shift premiums, incentive payments, cost of living allowances, separation payments and wages in lieu of notice shall be allocated to the pay period in which they are paid, and

      • (ii) remuneration not paid in respect of a pay period shall be allocated to the pay period in which it is paid.

  • (2) Where a person is on unpaid leave, has abandoned his employment or has been dismissed or laid off, the remuneration referred to in paragraph (1)(b) shall be allocated to the last pay period for which regular salary, wages or commissions are paid.

  • SOR/85-235, s. 1
  • SOR/88-584, s. 1
  • SOR/89-329, s. 1(F)

Calculation and Payment of Premiums

  •  (1) No employee’s premium is payable in respect of earnings in a pay period from excepted employment.

  • (2) The amount of premiums payable pursuant to the Act and these Regulations in respect of insurable earnings shall be determined in accordance with the rules set out in these Regulations.

  • (2.1) Subject to subsection (2.3), the amount of an employee’s premium to be deducted by an employer from any insurable earnings in a pay period shall be determined as follows:

    • (a) the ranges of insurable earnings used for determining the employee’s premium payable on those earnings shall begin at $0.50 and be increased by increments of

      • (i) $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.33, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.33, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.33, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.33, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.33, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.33 and $0.34 in recurring cycles for the succeeding ranges of insurable earnings up to $3,880.50,

      • (ii) $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.33, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.33, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.33, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.33, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.33, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34, $0.34 and $0.34 for the next fifty-six ranges of insurable earnings up to $3,899.49, and

      • (iii) $0.50 and $0.01 for the last two ranges of insurable earnings from $3,899.50 to $3,900; and

    • (b) the insurable earnings shall be multiplied by the rate of premium fixed pursuant to section 48 or 48.1 of the Act.

  • (2.2) Where a product obtained pursuant to paragraph (2.1)(b) contains a fraction of a cent, the product shall be rounded to the nearest whole cent or, if that product is equidistant from two whole cents, to the higher thereof.

  • (2.3) An employee’s premium shall not exceed the premium payable on maximum insurable earnings in respect of a pay period as determined in accordance with sections 5, 8 and 9.

  • (3) Subject to subsections (3.1), (3.11) and (4), every employer shall remit the employees’ premiums and the employer’s premiums payable under the Act and these Regulations to the Receiver General on or before the 15th day of the month following the month in which the employer paid to the insured person remuneration or other insurable earnings in respect of which premiums were required to be deducted or paid thereunder.

  • (3.1) Subject to subsection (3.11), where the average monthly withholding amount of an employer for the second calendar year preceding a particular calendar year is

    • (a) equal to or greater than $15,000 and less than $50,000, the employer shall remit the employees’ premiums and the employer’s premiums payable under the Act and these Regulations to the Receiver General

      • (i) in respect of remuneration or other insurable earnings paid before the 16th day of a month in the particular calendar year, on or before the 25th day of the month, and

      • (ii) in respect of remuneration or other insurable earnings paid after the 15th day of a month in the particular calendar year, on or before the 10th day of the following month; or

    • (b) equal to or greater than $50,000, the employer shall remit the employees’ premiums and the employer’s premiums payable under the Act and these Regulations to the Receiver General on or before the third day, not including a Saturday or a holiday, after the end of the following periods in which remuneration or other insurable earnings were paid,

      • (i) the period beginning on the first day of a month in the particular calendar year and ending on the 7th day of the month,

      • (ii) the period beginning on the 8th day of a month in the particular calendar year and ending on the 14th day of the month,

      • (iii) the period beginning on the 15th day of a month in the particular calendar year and ending on the 21st day of the month, and

      • (iv) the period beginning on the 22nd day of a month in the particular calendar year and ending on the last day of the month.

  • (3.11) Where an employer referred to in paragraph (3.1)(a) or (b) would otherwise be required to remit the employees’ premiums and the employer’s premiums in respect of a particular calendar year in accordance with that paragraph, the employer may elect to remit those premiums

    • (a) in accordance with subsection (3), if the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is less than $15,000 and the employer has advised the Minister that the employer has so elected; or

    • (b) if the average monthly withholding amount of the employer for the calendar year preceding the particular calendar year is equal to or greater than $15,000 and less than $50,000 and the employer has advised the Minister that the employer has so elected,

      • (i) in respect of remuneration or other insurable earnings paid before the 16th day of a month in the particular calendar year, on or before the 25th day of the month, and

      • (ii) in respect of remuneration or other insurable earnings paid after the 15th day of a month in the particular calendar year, on or before the 10th day of the following month.

  • (3.2) For the purpose of this section, the average monthly withholding amount of an employer for a calendar year is determined pursuant to subsections 108(1.2) and (1.3) of the Income Tax Regulations.

  • (4) Every employer carrying on a business or other activity in respect of which he employs one or more insured persons in insurable employment shall, within seven days of the day he ceases to carry on the business or other activity, remit to the Receiver General the employees’ premiums and the employer’s premiums that were required to be deducted or paid in respect of any such person under the Act and these Regulations.

  • (5) Every remittance by an employer of employees’ premiums and employer’s premiums to the Receiver General shall be accompanied by an information return in a form authorized by the Minister.

  • SOR/87-717, s. 1
  • SOR/89-329, s. 1(F)
  • SOR/90-48, s. 1
  • SOR/93-92, s. 1
  • SOR/95-593, s. 3
  • SOR/96-230, s. 1

Prescribed Persons

  •  (1) The following are prescribed persons for the purposes of subsection 53(1) of the Act:

    • (a) an employer who is required, under subsection 53(1) of the Act and in accordance with paragraph 4(3.1)(b), to remit amounts deducted; and

    • (b) a person or partnership who, acting on behalf of one or more employers, remits the following amounts in a particular calendar year and whose average monthly remittance, in respect of those amounts, for the second calendar year preceding the particular calendar year, is equal to or greater than $50,000,

      • (i) amounts required to be remitted under subsection 53(1) of the Act,

      • (ii) amounts required to be remitted under subsection 153(1) of the Income Tax Act and a similar provision of a law of a province that imposes a tax on the income of individuals, where the province has entered into an agreement with the Minister of Finance for the collection of taxes payable to the province, in respect of payments described in the definition remuneration in subsection 100(1) of the Income Tax Regulations, and

      • (iii) amounts required to be remitted under subsection 21(1) of the Canada Pension Plan.

  • (2) For the purposes of paragraph (1)(b), the average monthly remittance made by a person or partnership on behalf of all the employers for whom that person or partnership is acting, for the second calendar year preceding the particular calendar year, is the quotient obtained when the aggregate, for that preceding year, of all amounts referred to in subparagraphs (1)(b)(i) to (iii) remitted by the person or partnership on behalf of those employers is divided by the number of months, in that preceding year, for which the person or partnership remitted those amounts.

  • SOR/93-534, s. 2

 For the purpose of these Regulations, the maximum insurable earnings of an insured person for a pay period is

  • (a) where the pay period is a pay week, the maximum weekly insurable earnings;

  • (b) where the pay period is a multiple of a pay week, the amount described in paragraph (a) multiplied by the multiple;

  • (c) where the pay period is semi-monthly, the maximum yearly insurable earnings divided by 24;

  • (d) where the pay period is monthly, the maximum yearly insurable earnings divided by 12; and

  • (e) where the insurable earnings in a period of 52 consecutive weeks are paid in equal amounts in respect of a number of regular pay periods that do not extend over the entire 52-week period in respect of a contract of service for the 52-week period, the maximum yearly insurable earnings divided by the number of regular pay periods.

  •  (1) For the purposes of these Regulations, the minimum insurable earnings of an insured person for a pay period is

    • (a) where the pay period of that person is a pay week, the lesser of

      • (i) the amount of cash earnings that is equal to 1/5 of the maximum weekly insurable earnings of that person for that pay week, and

      • (ii) the amount of cash earnings that person earns for 15 hours of employment in that pay week;

    • (b) where the pay period of that person is a multiple of a pay week and there are cash earnings in each week or part thereof of the pay period, the lesser of

      • (i) an amount equal to the product obtained by multiplying the cash earnings determined under subparagraph (a)(i) by the multiple of the pay week, and

      • (ii) an amount equal to the product obtained by multiplying the amount of cash earnings that person earns for 15 hours of employment in that pay period by the multiple of the pay week;

    • (c) where the pay period of that person is a semi-monthly pay period and there are cash earnings in each week or part thereof in the pay period, the lesser of

      • (i) an amount equal to the product obtained by multiplying the cash earnings determined under subparagraph (a)(i) by 2 1/6, and

      • (ii) the amount of cash earnings that person earns for 33 hours of employment in that pay period; and

    • (d) where the pay period of that person is a monthly pay period and there are cash earnings in each week or part thereof in the pay period, the lesser of

      • (i) an amount equal to the product obtained by multiplying the cash earnings determined under subparagraph (a)(i) by 4 1/3, and

      • (ii) the amount of cash earnings that person earns for 65 hours of employment in that pay period.

  • (2) Subsection (1) shall apply according to its terms before it is published in the Canada Gazette.

  • SOR/79-64, s. 1
  • SOR/79-509, s. 1(F)
  • SOR/81-100, s. 1

Allocation of Insurable Earnings and Premiums Payable Thereon

Where Pay Period Is a Pay Week

  •  (1) Where the pay period of an insured person is a pay week, the insurable earnings for the pay week shall be allocated to, and the premiums shall be payable in respect of, the week in which the ending date of the pay week occurs or in the week in which separation from employment occurs, as the case may be.

Where Pay Period Is a Multiple of a Pay Week
  • (2) Where the pay period of an insured person is a multiple of a pay week, his earnings during the pay period shall be allocated and the employee’s premiums thereon be calculated in accordance with the following rules:

    • (a) where the insured person has earnings in each pay week that ends in the pay period and the person’s total earnings for that pay period are not less than the minimum insurable earnings for that pay period, the total earnings shall be allocated equally to the pay weeks that end in the pay period, and the amount of the employee’s premiums payable shall be determined on the basis of the earnings in that pay period;

    • (b) where the total earnings for the pay period are less than the minimum insurable earnings for that pay period, the earnings in each pay week that ends in the pay period that are not less than the minimum weekly insurable earnings shall be allocated to that pay week, and the amount of the employee’s premiums payable shall be the aggregate of the premiums determined on the basis of the earnings allocated to each pay week that ends in the pay period; and

    • (c) where the total earnings for the pay period are not less than the minimum insurable earnings for that pay period and the insured person has no earnings in any one pay week that ends in the pay period, the earnings in each pay week that are not less than the minimum weekly insurable earnings shall be allocated to that pay week, and the amount of the employee’s premiums payable shall be the aggregate of the premiums determined on the basis of the earnings allocated to each pay week that ends in the pay period.

Where Pay Period Is Semi-Monthly or Monthly
  • (3) Subject to these Regulations, where earnings of an insured person are calculated on the basis of a semi-monthly or monthly pay period, his insurable earnings shall be allocated for the purpose of paragraph (4)(a),

    • (a) in the case of an insured person who has earnings in each week and part thereof in a semi-monthly pay period, to 2 1/6 weeks; and

    • (b) in the case of an insured person who has earnings in each week and part thereof in a monthly pay period, to 4 1/3 weeks.

  • (4) Where the pay period of an insured person is semi-monthly or monthly, his earnings during the pay period shall be allocated and the employee’s premiums thereon shall be calculated in accordance with the following rules:

    • (a) where the insured person has earnings in each pay week in the pay period, and in the case of a pay week not falling completely within that pay period, has earnings in the part of the pay week that falls within that pay period, and the person’s total earnings for the pay period are not less than the minimum insurable earnings for that pay period, the earnings in each pay week or part thereof that falls within the pay period shall be allocated in accordance with subsection (3), and the amount of the employee’s premiums payable shall be determined on the basis of the earnings in that pay period;

    • (b) where the total earnings for the pay period are less than the minimum insurable earnings for that pay period, the earnings in each pay week or part thereof that falls within the pay period that are not less than the minimum weekly insurable earnings shall be allocated to that pay week, and the amount of the employee’s premiums payable shall be the aggregate of the premiums determined on the basis of the earnings allocated to each pay week or part thereof that falls within the pay period; and

    • (c) where the total earnings for the pay period are not less than the minimum insurable earnings for that pay period and the insured person has no earnings in any one pay week or part thereof that falls within the pay period, the earnings in each pay week or part thereof that falls within the pay period that are not less than the minimum weekly insurable earnings shall be allocated to that pay week, and the amount of the employee’s premiums payable shall be the aggregate of the premiums determined on the basis of the earnings allocated to each pay week or part thereof that falls within the pay period.

  • SOR/95-593, s. 4
 
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