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Employment Insurance (EI) formula to calculate insurable earnings of teachers working on contract - 53 week record of employment on the web (ROE Web)
Why a formula?
Teaching contract 27 weeks or shorter
Comments on the Record of Employment (ROE)
How to use the formula?
Additional information for all school boards New
The formula is a way to calculate the daily average insurable earnings for teachers with contract duration longer than 27 weeks. This is needed to complete the insurable earnings by pay period in Block 15C on the 53 week ROE Web.
For the purpose of calculating the benefit rate, the employer will report on the ROE the insurable earnings of the last 53 weeks — or less — in Block 15C. With the formula, the insurable earnings are allocated proportionately over the term of the contract, regardless of the basis on which they are paid.
If you are completing a 27 week ROE, refer to the formula for the 27 week ROE.
It is not necessary to do any averaging of the earnings when the duration of the contract is 27 weeks or shorter. All the earnings have to be reported on the ROE.
Comments on the Record of Employment (ROE)
Avoid the use of comments. Comments should be used only in exceptional circumstances to provide additional information or clarification. Do not include comments that only confirm that the information on the ROE is correct – e.g. "17A included in Block 15B" or "vacation pay included in pay period (PP) 1".
How to use the formula?
The following examples illustrate the use of the daily averaging formula when a contract duration is longer than 27 weeks. Using the formula, the insurable earnings by pay period in Block 15C will be completed on a weekly basis. One week is equivalent to 7 calendar days.
The daily average earnings are obtained by dividing the total earnings for the contract period by the total number of calendar days within the contract period.
See example. We have used rounded figures in all the examples to simplify the calculations.
One year contract – contract completed
The teacher has an interruption of earnings on August 31, 2006 – last day paid. For Block 15C, the following calculations must be done:
Since the averaging formula is used, Block 15C is completed with the weekly insurable earnings, starting with the full calendar weeks as follows:
The total insurable earnings to be reported in Block 15B for the last 27 weeks is $18,144, i.e. the sum of the entries in PP1 through PP27: $672 X 27 weeks — the completion of Block 15B did not change with the 53 week ROE Web. In this case the pay period type should be recorded in block 6 as “Weekly” and the end date of the final pay period in Block 12 must be equal to the last day paid in Block 11, August 31, 2006. |
See another example where the interruption of earnings occurs before the end of the contract.
One year contract – contract not completed
The teacher has an interruption of earnings on June 6, 2006 — last day paid —due to maternity leave. For Block 15C, the following calculations must be done:
Since the averaging formula is used, Block 15C is completed with the weekly insurable earnings, starting with the full calendar weeks as follows:
The total insurable earnings to be reported in Block 15B for the last 27 weeks is $23,247, i.e. the sum of PP1 to PP27 $861 X 27 weeks — the completion of Block 15B did not change with the 53 week ROE Web. In this case the pay period type should be recorded in Block 6 as “Weekly” and the end date of the final pay period in Block 12 must be equal to the last day paid in Block 11, June 6, 2006. |
It might be necessary to combine the average insurable earnings of 2 contracts on the same ROE in order to complete Block 15C with the last 53 weeks — or less. In that situation, you must determine the daily average for each contract separately.
See example:
Two contracts, one Record of Employment
The teacher has an interruption of earnings on January 13, 2006 — last day paid — due to maternity leave. For Block 15C, the following calculation must be done:
Since an averaging formula is used, Block 15C is completed with the weekly insurable earnings starting with the full calendar weeks from contract 2 and continuing with contract 1 as follows:
The total insurable earnings to be reported in Block 15B for the last 27 weeks is $22,545, i.e. the sum of PP1 to PP27 — the completion of Block 15B did not change with the 53 week ROE Web. In this case the pay period type should be recorded in Block 6 as “Weekly” and the end date of the final pay period in Block 12 must be equal to the last day paid in Block 11, January 13, 2006. |
For more information on the averaging formula, please call the Insurance Telephone Information Service or contact your Service Canada Centre.
