Employment Insurance (EI) and overpayments
What you should know
Causes of overpayment
Mistakes can happen
How do we consider the undeclared earnings?
Repaying an overpayment
What you should know
In order to protect the Employment Insurance Fund, we are responsible for ensuring that EI benefits are only paid to eligible individuals. This responsibility is shared by all workers, employers and the Government of Canada.
EI applications for which benefits have been paid or have become payable are reviewed regularly. These revisions sometimes reveal that individuals have received amounts to which they were not entitled and an overpayment is established. In addition, if it is established that fraud was committed, punitive measures are imposed.
According to the EI Act, we may review a claim for benefits within 36 months following the time the benefits were paid or became payable. On the other hand, if in our opinion, a false or misleading declaration was made, the length of time for revision is extended to 72 months.
Causes of overpayment
An overpayment may originate in various ways. For example:
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An error or a false declaration on your part when you submitted your application for benefits or when you filled out your report;
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An error or a false declaration on the part of your employer when issuing your record of employment;
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An error on our part in processing your application;
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New facts provided by you, your employer or a third party as a result of an enquiry/investigation or other verification measures taken by us;
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Decisions made by the Canada Revenue Agency with respect to the insurability of your employment
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Mistakes can happen
If you have made a mistake filling out your report or any other form, it is important that you notify us as soon as possible. You must call our Telephone Information Service at 1 800 206-7218 from 8:30 am to 4:30 pm, write to us or go in person to your Service Canada Centre. Do not forget, if you conceal or falsify information, you are committing fraud and this is punishable by law.
Tip: Use the reporting calendar — PDF 11 kb — to keep track of your earnings and hours worked. About PDF Files.
Repaying an overpayment
You received an notice of debt or a monthly statement indicating that you have a debt to pay. The remittance of this debt is due in full upon receipt of the notice. You can make your payment at any Canadian bank or financial institution, including Internet — select Social Development Canada — and by cheque or money order payable to the “Receiver General for Canada”. Please include the payment slip if you are making your payment by mail or in person. A $15 fee may be applied to all NSF cheques.
If you are unable to repay the amount in full, you must make the minimum monthly payment indicated on the statement of account.
However, if you are currently receiving EI benefits, you can ask for an amount to be withheld. To do this, you must contact your recovery agent whose name and telephone number appear on the overpayment notice.
However, if you have not agreed to a repayment arrangement with your recovery agent, repayment of your debt will be recovered automatically at 50% of your benefit rate.
We also have other collection options, which may be used alongside or instead of a repayment arrangement, if necessary:
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we may reduce your debt by taking any credits you are owed, such as an income tax refund or a Goods and Services Tax (GSR)/Harmonized Sales Tax (HST) credit
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if you do not follow you repayment plan, we could seize your salary, or your bank account, or both;
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we may take legal action if all attempts to obtain a satisfactory repayment arrangement have failed.
Please contact the Recovery Office in your region to discuss repayment.
The recovery period of a debt must be within 72 months from the date that the overpayment was created. However, this period is suspended during an appeal or other review process of the decision which caused the debt.
Do not forget that, when applicable, interest will accumulate until your account is paid in full.
