A lot of information is available for employers regarding employment insurance. One of the main areas to look at is a claim for EI and an employer’s role in the process. Another area to keep an eye on is how to prepare records of your employees’ employment, report on your hirings, and what to do if there are changes to your workforce.
Employers’ responsibilities
Employers are required to be responsible for their workers’ health and safety. Moreover, employers have to pay their employees on time. However, not all employees are eligible for employment insurance. Nevertheless, this insurance protects employees in the event of unemployment. For instance, if an employee gets laid off, they can apply for a percentage of their wages.
Under the Affordable Care Act, certain employers must provide minimum essential coverage. These requirements are sometimes called the employer mandate. The requirement is meant to encourage firms to offer health insurance to their employees. It is also designed to strengthen the employer-sponsored insurance industry. In addition, some large employers may be penalized for not offering affordable coverage to their employees.
Some employers’ responsibilities under the Affordable Care Act include providing employees accurate information about their benefits. They are also required to deduct the correct amounts for benefits and taxes. Whether an employer has self-insured health plans or offers coverage through a health insurer, it has to report insurer information to the IRS. Depending on the workforce size in the preceding year, an employer can be considered an applicable large employer (ALE). ALEs must have at least 50 full-time employees in the previous calendar year.
Deducting and remitting EI premiums
If you are an employer, you may wonder how to deduct and remit EI premiums. Employment insurance is a government program that provides coverage for workers who may be injured or become ill. It also protects employees who have children.
Deducting and remitting EI premiums is a legal requirement for many employers. Failure to remit can lead to fines and even wage garnishments. Using a payroll software program to calculate EI premiums is one way to do it automatically. You can use the T4001 Employer’s Guide to understand what deductions to include.
Two basic ways to remit EI premiums are by mail or online. For online remittances, you must use the online portal called My Business Account.
You will need to fill out a remittance form to remit premiums by mail. Once you have completed this form, it will be sent to the CRA. The remittance form includes information about your business and your remittance.
You should follow a series of specific remittance deadlines each year. Usually, remittances are due by the 15th of the month following the month they were made. However, this can vary from year to year.
Supplementing EI benefits
The Supplemental Unemployment Benefit (“SUB”) program allows employers to cover the wages of unemployed employees. It’s a federally registered program that doesn’t affect an employee’s EI entitlement. Instead, the top-up is considered an ordinary operating expense.
SUB programs can be used for various reasons, including sickness, injury, and temporary layoffs. In addition, they can be set up in conjunction with state unemployment benefits. Employers can choose the duration and amount of the benefit plan. They can also pay the top-up to employees on deemed job-protected leave.
Employees who receive benefits from a SUB program may have to repay their benefits. Depending on their net income, this may affect their eligibility for Employment Insurance benefits. If employees’ net income exceeds $67,750, they may need to repay a portion of their EI benefits.
There are several types of SUB plans that Service Canada governs. An employer, a third-party provider, or both can implement a SUB plan. However, there are specific rules to follow when setting up a SUB plan.
First, employers need to register a SUB plan with Service Canada. To do so, they must provide a copy of the plan to Service Canada. Once this is done, it will be registered, and the effective date will be determined.
Managing changes to your workforce
Managing changes to your workforce with employment insurance can be a pain in the neck. Aside from employee retention, there is also the issue of churn, the ever-present thorn in the flesh. The good news is there are some tips and tricks for the trade. A sound communication policy is the first step to a smooth transition. It’s also a good idea to consult with your human resources department to ensure your employees’ concerns are met in the most cost-effective way possible. After all, you don’t want to burn any bridges if you can help it. One of the best ways to achieve this is to have regular staff meetings where you can engage employees and their ideas on how to make your company a better place to work. Obviously, no one is expecting you to recite your oh sod off your boss or the union hall, but getting employees to the table is a good idea so you can have face-to-face discussions about their concerns. By fostering this type of communication, you are keeping your workers in mind and keeping them in the loop when it comes to company news.
Report on hirings
The federal government requires employers to report on hiring to protect the Employment Insurance program. The report contains the following information for each new hire: the employee’s name, address, and work status. It also includes the employer’s name, Federal Employer Identification Number, and Social Security number. This information is loaded into the National Directory of New Hires, which states use for new hire tracking.
State law also requires employers to report on rehired employees. These include employees who quit and return to work within 60 days. Anyone on the payroll during a gap in pay (such as seasonal workers or those on paid leave) is also considered a recalled employee. Those hired after a layoff must also be reported within 14 days of their start date.
Multistate employers must follow the new-hire reporting programs of all the states in which they operate. These organizations can submit their reports electronically or magnetically. They must also notify the federal Department of Health and Human Services about new hires. If an employer opts to report electronically, they must submit two monthly transmissions.