Chapter 2: Block-by-block instructions for completing the Record of Employment
Table of Contents
- In what order should I complete the blocks of the ROE?
- Block 1, Serial number
- Block 2, Serial number of ROE amended or replaced
- Block 3, Employer's payroll reference number (optional)
- Block 4, Employer's name and address
- Block 5, CRA Business Number (Payroll Account Number)
- Block 6, Pay period type
- Block 7, Employer's postal code
- Block 8, Employee's Social Insurance Number
- Block 9, Employee's name and address
- Block 10, First day worked
- Block 11, Last day for which paid
- Block 12, Final pay period ending date
- Block 13, Occupation (optional)
- Block 14, Expected date of recall (optional)
- Block 15A, Total insurable hours
- Block 15B, Total insurable earnings
- Block 15C, Insurable earnings by pay period
- Block 16, Reason for issuing this ROE
- Block 17, Separation payments
- Block 18, Comments
- Block 19, Paid sick/maternity/parental/compassionate care/parents of critically ill children leave or group wage loss indemnity payment
- Block 20, Language
- Block 21, Telephone number of issuer
- Block 22, Certification
In this chapter, we provide detailed instructions on how to complete the ROE. If you have any questions, call the Employer Contact Centre at 1-800-367-5693 (TTY: 1-855-881-9874).
See Annex 3 - example of a completed paper ROE.
In what order should I complete the blocks of the ROE?
You can complete the administrative information (Blocks 1 through 9, and Blocks 13 and 14) in any order you like. However, it is often easier to complete the rest of the form in the following order:
Step 1: Complete the period of employment information in Blocks 10, 11, and 12. This information provides you with the timeframe for which you need to report the employee's insurable hours and earnings.
Step 2: Enter any separation payments paid or payable to the employee in Blocks 17A, 17B, and 17C (see more information on Block 17).
Step 3: Calculate the insurable hours to enter in Block 15A.
Step 4: If you need to complete Block 15C, do it next. Then, enter the total insurable earnings in Block 15B. Remember to include the insurable separation payments you entered in Block 17 in the total amount you enter for the final pay period (P.P. 1) in Block 15C, and in the total insurable earnings you enter in Block 15B.
Notes
- For paper ROEs, you only need to complete Block 15C if the employee received no insurable earnings in one or more pay periods, or if you opt to do so in order to provide us with the necessary information for the variable best weeks calculation (for more information, see Block 15C, Insurable earnings by pay period).
- For electronic ROEs, you must always complete Block 15C.
Block 1, Serial number
Each paper ROE is numbered with a pre-printed serial number. If you are using paper ROEs, the serial number already appears in this block. It is important for the employer to keep records of the serial numbers of all completed or destroyed ROEs for six years.
When you use an electronic ROE, the program automatically assigns a serial number to each ROE form as soon as it is successfully submitted to Service Canada. There is no need to keep a record of these serial numbers, although it might be helpful if you need to amend an electronic ROE later.
Block 2, Serial number of ROE amended or replaced
Complete this block if you are issuing an amended ROE to change or correct information you provided on an original ROE. In this block, enter the serial number of the original ROE.
Note: When you issue an amended ROE, make sure to complete the entire form and re-enter all the correct information from the original ROE, not just the changed information.
Block 3, Employer's payroll reference number (optional)
In this block, enter the number you are using to identify the employee in your payroll records.
Block 4, Employer's name and address
In this block, enter the employer's name and address. Use the same name and address that appear on the Canada Revenue Agency remittance form you use to report your payroll source deductions. (Note: You have to enter the employer's postal code in Block 7.)
Block 5, CRA Business Number (Payroll Account Number)
Enter the Canada Revenue Agency Payroll Account Number (formerly called the Business Number) you use to report the employee's payroll deductions to the Canada Revenue Agency. The Payroll Account Number consists of nine numbers, followed by two letters, followed by four numbers. You must enter all 15 characters.
Notes
- If you have several Payroll Account Numbers, enter the Payroll Account Number you used to report the payroll deductions for the employee who is receiving the ROE.
- If you have an employee who is working in two or more positions at the same time, you may have assigned different Payroll Account Numbers to those positions. If the employee experiences an interruption of earnings in all positions, you can issue one ROE combining all the payroll info. If you cannot combine all the information, you can issue separate ROEs for each Payroll Account Number.
Block 6, Pay period type
In this block, enter the pay period type for the employee. There are five standard types of pay period: weekly, biweekly, semi-monthly, monthly, or 13 pay periods a year.
If your semi-monthly or monthly pay periods are non-standard (that is, they do not end on the fifteenth or the last day of the month), please enter "non-standard semi-monthly" or "non-standard monthly" in this block.
Special situations
For employees who are paid solely on commission or on salary plus irregularly paid commission: Use a weekly pay period and average the earnings over the period of employment covered by the ROE. For more information, see How to use the weekly averaging formula.
For contract workers who are not paid on a regular basis: Use a weekly pay period and average the earnings over the period of employment covered by the ROE. For more information, see How to use the weekly averaging formula.
For employees who work irregular pay periods: For employees who work irregular pay periods—for example, if your pay cycles vary in length, where one period may cover 29 days and the next may cover 32 days—use a weekly pay period type and average the earnings over the period of employment covered by the ROE. For more information, see How to use the weekly averaging formula.
Example
Lea works for an employer that has irregular pay periods: one pay period covers 25 days, the next covers 29 days, and another covers 35 days. In this case, enter weekly as the pay period type in Block 6 and average the earnings over the period of employment using the weekly averaging formula.
Note: An ROE should only reflect one pay period type. If you change your pay period type during an employee's period of employment, you should issue an ROE for the period of employment up to the change in pay period type. If there is an interruption of earnings later, you should issue a second ROE for the rest of the employee's period of employment until the interruption of earnings. On the second ROE, in Block 10, enter the date of the first day after the pay period change, and in Block 11, enter the last day for which paid.
Block 7, Employer's postal code
In this block, enter the employer's postal code.
Block 8, Employee's Social Insurance Number
In this block, enter the employee's nine-digit Social Insurance Number (SIN). It is very important to enter the correct SIN on an ROE, since we cannot process a claim for EI benefits without it.
Note: Social Insurance Numbers that begin with a 9 are temporary numbers. Check with your employee to see if they have since received a permanent number. If they have, enter the permanent number here.
Block 9, Employee's name and address
In this block, enter the employee's name (first name and initials, followed by the family name) and the employee's address you have on file, including the postal code.
Block 10, First day worked
In Block 10, you usually enter the employee's first day of work for which he or she received insurable earnings. However, if you have previously issued an ROE for that employee, the date you enter in Block 10 will be the first day the employee worked after the last interruption of earnings (that is, since the last ROE was issued).
Example
Anne started working for you in March 2009 as a landscaper. In November 2009, you completed an ROE for Anne, since your business closes each year over the winter months. On March 15, 2010, Anne returned to work for your company. Now in November 2010, you are ready to complete the latest ROE for Anne. In Block 10, you enter "15/03/2010" as Anne's first day worked.
Notes
- The date you enter in Block 10 is not necessarily the day the employee was hired, unless the employee worked on that day. The first day worked must be a day when the employee worked and received insurable earnings.
- If you are planning to pay your employee for a statutory holiday that occurs before the employee's first day of work, call the Employer Contact Centre at 1-800-367-5693 (TTY: 1-855-881-9874) for more information on how to report it.
Block 11, Last day for which paid
In Block 11, enter the last day for which the employee received insurable earnings. This date usually coincides with the last day of work; however, in some cases, employees continue to receive insurable earnings after their last day of work. This occurs with paid leave, such as vacation or sick leave, earned days off, or salary continuance (see Salary continuance below). In these cases, enter the date of the last day of paid leave in Block 11, making sure that date is not a statutory holiday (see Block 17B, Statutory holiday pay for details on how to report statutory holidays).
Example
Your employee Nader has become ill and has to stop working for a while. His last day of work was May 7, 2010, at which time he began receiving sick leave payments, which are considered insurable earnings. He received 10 paid sick days, until May 21, 2010. In Block 11 of Nader's ROE, you enter "21/05/2010."
Note: When unpaid wages are owing to an employee on separation because of the employer's bankruptcy, receivership, or impending receivership, you must enter the last day for which these wages are owed.
Example
Several employees of a construction company are told they will be laid off on November 30. Their pay period is monthly, and because of their employer's bankruptcy they do not receive their last pay cheque on November 30. Even though the employees have not been paid for their last month of work, you would enter "November 30" as the last day for which paid in Block 11.
Salary continuance
As part of a severance package, instead of receiving a lump-sum payment on separation, an employee may receive a salary continuance. Under a salary continuance, the employee continues to receive a regular pay cheque and continues to be entitled to employee benefits for a certain time period. There is no interruption of earnings between the last day worked and the beginning of the salary continuance—in fact, there is no interruption of earnings until the salary continuance stops. For this reason, do not issue an ROE until the end of the salary continuance period. In Block 11, enter the last day of the salary continuance period, not the last day worked.
Note: For questions on what constitutes a salary continuance, contact the Canada Revenue Agency.
Block 12, Final pay period ending date
In Block 12, you enter the end date of the final pay period that includes the date you entered in Block 11. The date in Block 11 and the date in Block 12 will usually be different dates, except when the employee's last day paid corresponds to the last day of the pay period. Please note that the date in Block 12 can never be earlier than the date in Block 11.
Example
Your pay period is monthly, with an end date of the last day of each month. Saffi started working for you on March 15, 2001, and her last day of work was March 19, 2010. There were no interruptions of earnings during those nine years, and you did not complete a previous ROE for Saffi. In Block 10, you enter "15/03/2001," and in Block 11, you enter "19/03/2010." In Block 12, you enter "31/03/2010," since that is the end date of the final pay period that includes the last day paid.
Note: When using the weekly averaging formula, use the Saturday of the week that contains the last day for which paid as the date to enter in Block 12.
Block 13, Occupation (optional)
In this block, enter an accurate description of the employee's main occupation (for example, sales clerk, graphic designer, construction labourer, legal assistant).
Block 14, Expected date of recall (optional)
If the employee will be returning to work and you know the expected return date, enter it in Block 14. If you do not know the return date, check the "Unknown" box. If the employee will not be returning to work, check the "Not returning" box.
Block 15A, Total insurable hours
To determine if hours are insurable, see Annex 1 on types of earnings and insurable hours of this guide.
There are three steps to calculating the number of hours to enter in Block 15A:
- determine the number of consecutive pay periods to use;
- determine which hours are insurable; and
- calculate the employee's total insurable hours.
Step 1 – Determine the number of consecutive pay periods to use
In Block 6, you identified your pay period type. Now, you must determine the number of consecutive pay periods that occurred during the period of employment—the amount of time between the date in Block 10 and the date in Block 11. Specifically, starting with the most recent pay period, you have to add up how many full, partial, and nil pay periods (any pay periods during which the employee did not work and did not receive any insurable earnings) occurred during the period of employment, up to a predetermined maximum number (see the chart below).
| Pay period type | The maximum number* of most recent consecutive pay periods used to calculate the employee's total insurable hours |
|---|---|
| Weekly | 53 |
| Biweekly | 27 |
| Semi-monthly (including non-standard) | 25 |
| Monthly (including non-standard) | 13 |
| 13 pay periods a year | 14 |
*The number of pay periods you use to determine the number of hours to enter in Block 15A is different from the number of pay periods you use for Block 15B.
Example 1
Since your pay periods end on the fifteenth and the last day of each month, your pay period is semi-monthly. Paula started working for you on April 19, 2010, and her last day of work was December 10, 2010. In Block 10 you enter "19/04/2010," in Block 11 you enter "10/12/2010," and in Block 12 you enter "15/12/2010." To determine how many pay periods apply, you have to count the number of pay periods between the dates in Block 10 and Block 11. In this case, there are 16 pay periods between April 19 and December 10—fewer than the maximum number of 25 semi-monthly pay periods according to the "Calculating total insurable hours" chart on page 15. Therefore, all insurable hours are included. For this reason, you report all of Paula's insurable hours in Block 15A.
Example 2
Your pay period is weekly, ending on Friday. Roman started working for you on February 14, 1993, and his last day of work was September 28, 2010. There have been no interruptions of earnings during those 17 years, so you have not issued any previous ROEs. In Block 10 you enter "14/02/1993," in Block 11 you enter "28/09/2010," and in Block 12 you enter "01/10/2010." To determine how many pay periods apply, you check the "Calculating total insurable hours" chart. Since your pay period is weekly, and because Roman worked for more than the maximum number of pay periods, you only report insurable hours for the most recent consecutive 53 pay periods on Roman's ROE.
Step 2: Determine which hours are insurable
The total number of hours employees work each week for which they receive insurable earnings are considered insurable hours. The different types of insurable earnings are described in Annex 1, and include vacation pay, overtime pay, and statutory holiday pay.
If the employee received statutory holiday pay, include the statutory holiday hours in the total insurable hours, unless the statutory holiday occurred after the date in Block 11 (see Block 17B, Statutory holiday pay for details). If this is the case, you may or may not have to include the statutory holiday hours in the total insurable hours—it all depends on whether the employee's departure is final or not final.
If the employee's departure is final
We consider an employee's departure as final when the employer–employee relationship is not expected to continue in the future. For example, the departure is final when an employee is dismissed, when a job disappears because of restructuring, when a business closes, or when an employee voluntarily leaves. When the departure is final, do not include the hours for a paid statutory holiday that occurs after the date in Block 11 in the employee's total insurable hours (Block 15A).
Example
Mario started working for you on February 15, 2010, and his last day of work was December 17, 2010. His position within your company is no longer required, so his departure is final. You pay employees for any statutory holidays that occur during the month of departure. For this reason, you will pay Mario for the December 25 statutory holiday.
When completing Mario's ROE, you enter "15/02/2010" in Block 10 and "17/12/2010" in Block 11. To determine the Block 15A amount, you use the last 44 pay periods to calculate Mario's total insurable hours (since you pay your employees weekly and because there are 44 full, partial, and nil pay periods that fall during the period of employment). Although you paid Mario for the December 25 statutory holiday, you do not include the hours for this statutory holiday day in his total insurable hours, since his departure is final.
If the employee's departure is not final
We consider an employee's departure as not final when the employer–employee relationship is expected to continue in the future. For example, the departure is not final if the employee will be returning to work after a period of leave, or if you intend to rehire the employee after a temporary layoff (even if you do not know the return date).
When the departure is not final, if you pay for a statutory holiday, the hours are insurable. For this reason, include these hours in the employee's total insurable hours in Block 15A.
Example
You pay your employees biweekly, ending every other Friday. Mai has worked at your factory since May 15, 2005, without any work interruptions. You have not issued any previous ROEs for Mai. Starting on December 31, 2009, you have to temporarily shut the factory down for two months to perform required maintenance. Mai's last day of work is December 30, 2009, but she plans to return to work once the maintenance is done. For this reason, because you pay your employees for statutory holidays, you pay Mai for the January 1, 2010, statutory holiday.
When completing Mai's ROE, you enter "15/05/2005" in Block 10, "30/12/2009" in Block 11, and "01/01/2010" in Block 12, since that is the ending date of the last pay period. Since Mai worked for more than the maximum number of 27 biweekly pay periods, you use the last 27 pay periods to determine Mai's total insurable hours. Because Mai's departure is not final, you include the statutory holiday hours in the total insurable hours you enter in Block 15A. Also, the statutory holiday pay is included in P.P. 1 (the final pay period field) of Block 15C. Enter "01/01/2010" in Block 17B and the amount.
Step 3 – Calculate the employee's total insurable hours
Once you have determined the number of insurable hours the employee worked for each pay period (including statutory holiday hours), add all the insurable hours together. This number is the employee's total insurable hours. Enter it in Block 15A.
Block 15B, Total insurable earnings
Helpful hint for completing Block 15B
Before you complete Block 15B, you may want to take the time to complete Block 15C, even though it may not be required, and Block 17.
By doing so, it may be easier for you to calculate the correct amount to enter in Block 15B. It may also reduce the number of calls you receive from Service Canada requesting more information. See instructions on how to complete Block 15C.
There are three steps to calculating the total insurable earnings to enter in Block 15B:
- determine the number of consecutive pay periods to use;
- determine which earnings are insurable; and
- calculate the employee's total insurable earnings.
Notes
- When an employee is paid in foreign currency, it is the employer's responsibility to convert the foreign currency to Canadian dollars for the purpose of completing the ROE.
- When an employee's earnings consist of commissions only or salary and irregularly paid commissions (for example, real estate agents or commission salespeople) or when an employee has irregular pay periods (for example, some contract workers) you must calculate a weekly average amount for the employee's earnings over the period of employment reported on the ROE. For details, see How to use the weekly averaging formula.
- When unpaid wages (not including amounts for overtime or termination pay) are owing to an employee on separation because of the employer's bankruptcy, receivership, or impending receivership, you must still include the hours and earnings on the ROE.
- The amounts you include in Blocks 15B and 15C should reflect the actual amounts the employee earned. If you paid any amounts in error, do not include them on the ROE. If you later determine that you will not be able to recover the money you paid in error to the employee, the money will become a taxable benefit. You must then include the amount on the ROE in the pay period during which you determine that you will not be able to recover it.
Step 1 – Determine the number of consecutive pay periods to use
In Block 6, you identified your pay period type. Now, you must determine the number of consecutive pay periods that occurred during the period of employment—the amount of time between the date in Block 10 and the date in Block 11.
Specifically, starting with the most recent pay period, you have to add up how many full, partial, and nil pay periods occurred during the period of employment, up to a predetermined maximum number (see table below).
| Pay period type | The maximum number* of most recent consecutive pay periods you use to calculate the employee's total insurable earnings |
|---|---|
| Weekly | 27 |
| Biweekly | 14 |
| Semi-monthly (including non-standard) | 13 |
| Monthly (including non-standard) | 7 |
| 13 pay periods a year | 7 |
*The number of pay periods you use to determine the amount to enter in Block 15B is different from the number of pay periods you use for Block 15A.
Example 1
Your pay period is biweekly, ending every other Friday. Sandeep started working for you on May 10, 2010, and his last day of work was October 15, 2010. The first pay period he worked was a partial one, since it ended on May 14, 2010.
In addition, Sandeep did not work for one full pay period during the summer, and did not receive any earnings for that two-week period.
In Block 10 you enter "10/05/2010," in Block 11 you enter "15/10/2010," and in Block 12 you enter "15/10/2010." To determine how many pay periods apply, count the number of full, partial, and nil pay periods that fall during the period of employment. In this case, between May 10 and October 15, there were 12 full, partial, and nil pay periods. To calculate Sandeep's total insurable earnings, you will add up all the insurable earnings he received during these 12 pay periods.
Example 2
Your pay period is monthly, ending on the last day of the month. Mélanie started working for you on January 4, 2000, and her last day of work was June 18, 2010. There have been no work interruptions during those 10 years, and you have not issued any previous ROEs for her.
In Block 10 you enter "04/01/2000," in Block 11 you enter "18/06/2010," and in Block 12 you enter "30/06/2010." To determine how many pay periods apply, you check the "Calculating total insurable earnings" chart above. According to the chart, the maximum number of monthly pay periods that apply is seven. Since your pay period is monthly, and because Mélanie worked for more than the maximum number of pay periods, you will only report insurable earnings for the most recent seven consecutive pay periods on Mélanie's ROE.
Step 2: Determine which earnings are insurable
Once you have determined the number of pay periods you need to use, you must then determine the employee's insurable earnings for each pay period, including statutory holiday pay. To determine which earnings are insurable, see Annex 1 on types of earnings and insurable hours. In all cases, statutory holiday pay is included in insurable earnings—you only need to figure out in which pay period you should include it.
If the statutory holiday occurred during the period of employment (that is, before the date you enter in Block 11), you should report the statutory holiday pay in the pay period during which the statutory holiday occurred.
If the statutory holiday occurred after the period of employment (that is, after the date you enter in Block 11), you should include the earnings for the statutory holiday in the final pay period.
Example
Your pay period is monthly, with an end date of the last day of the month. Terry has worked for you since May 21, 2004, and his last day of work is December 30, 2009. In Block 10 you enter "21/05/2004," in Block 11 you enter "30/12/2009," and in Block 12 you enter "31/12/2009."
You paid Terry for the January 1 statutory holiday, which occurs after the date you enter in Block 11. You include the statutory holiday pay for January 1 in the final pay period. In this case, you also need to enter "01/01/2010" and the corresponding in Block 17B Statutory holiday pay.
Step 3 – Calculate the employee's total insurable earnings
Once you have determined the insurable earnings the employee received for each pay period, add all the insurable earnings together. This amount is the employee's total insurable earnings. Enter it in Block 15B.
Note: You must report all insurable earnings the employee received—not just the EI maximum insurable earnings amount.
Block 15C, Insurable earnings by pay period
There is a difference between the paper ROE and the electronic ROE in terms of the number of pay periods of information we ask you to provide in Block 15C.
Completing Block 15C on the paper ROE (27 fields)
If you use a paper ROE, you only have to complete Block 15C if the employee did not earn any insurable earnings in one or more pay periods. In Block 15C on the paper ROE, there are 27 fields in which to report insurable earnings, which allows for a maximum of 27 weekly pay periods.
Note: As of April 7, 2013, a new way of calculating a claimant’s Employment insurance benefit rate comes into effect. This new way of calculating the benefit rate will take into account the employee’s best weeks in the last year. Because of this, you are encouraged to complete Block 15C (according to the instructions for the electronic 53 field ROE) even if there are not any pay periods where the employee did not earn any insurable earnings.
In Block 15C, you must provide the payroll data for the required number of pay periods as indicated in the chart below, or fewer if the period of employment is shorter. Enter the insurable earnings the employee received for each full, partial, or nil pay period. To do so, complete Block 15C, making sure to enter the insurable earnings for the final pay period in the first pay-period field (the one marked "1" in the "P.P." column), the second-last pay period in the second pay-period field (P.P. 2), and so on.
For any nil pay periods with no insurable earnings, enter "0.00."
Include both dollars and cents. Do not round off the totals. Do not use the dollar sign.
In P.P. 1, remember to include any insurable amounts you reported in Block 17 Separation payments.
To determine the number of consecutive pay periods to enter in this block, see the chart below.
| Pay period type | Maximum number* of most recent consecutive pay periods you use to calculate the employee's total insurable earnings |
|---|---|
| Weekly | 27 |
| Biweekly | 14 |
| Semi-monthly (including non-standard) | 13 |
| Monthly (including non-standard) | 7 |
| 13 pay periods a year | 7 |
*The number of pay periods you use to determine the amount to enter in Block 15C on a paper ROE is different from the number of pay periods you use for Block 15A.
Example
Your pay period is bi-weekly, ending on every second Friday. Hassan started working for you on April 5, 2010, and his last day of work was September 17, 2010. He took part of July off in unpaid leave.
In Block 10 you enter "05/04/2010," in Block 11 you enter "17/09/2010," and in Block 12 you enter "30/09/2010." In Block 15C you enter the following details for the twelve consecutive pay periods that apply:
| P.P. | INSURABLE EARNINGS | P.P. | INSURABLE EARNINGS | P.P. | INSURABLE EARNINGS |
|---|---|---|---|---|---|
| 1 | 1,800.00 | 2 | 1,800.00 | 3 | 1,800.00 |
| 4 | 750.00 | 5 | 0.00 | 6 | 450.00 |
| 7 | 1,800.00 | 8 | 1,800.00 | 9 | 1,800.00 |
| 10 | 1,800.00 | 11 | 1,800.00 | 12 | 1,100.00 |
| 13 | 14 | 15 | |||
| 16 | 17 | 18 | |||
| 19 | 20 | 21 | |||
| 22 | 23 | 24 | |||
| 25 | 26 | 27 |
Legend
- P.P. 1: Final pay period (contains last day for which paid)
- P.P. 2, 3: Full pay period
- P.P. 4: Partial pay period
- P.P. 5: Nil pay period
- P.P. 6: Partial pay period
- P.P. 7, 8, 9, 10 and 11: Full pay periods
- P.P. 12: First pay period (contains first day worked)
Completing Block 15C on the electronic ROE (53 fields)
If you use electronic ROEs, you must complete Block 15C and provide the equivalent of 53 weeks of payroll data (or less, if the period of employment is shorter than 53 weeks). Make sure to enter the insurable earnings for the final pay period in the first pay period field (the one marked "1" in the "P.P." column), the second-last pay period in the second pay-period field (P.P. 2), and so on. For any nil pay periods with no insurable earnings, enter "0.00."
To determine the number of consecutive pay periods to enter in this block, see the chart below.
| Pay period type | Maximum number of most recent consecutive pay periods you use to calculate the employee's total insurable earnings |
|---|---|
| Weekly | 53 |
| Biweekly | 27 |
| Semi-monthly (includes non-standard) | 25 |
| Monthly (including non-standard) | 13 |
| 13 pay periods a year | 14 |
Variable Best Weeks
Variable Best Weeks is the new national approach to calculating EI weekly benefit rates. It will align the calculation of benefits with the local labour market conditions in each region. Specifically, EI benefit rates will be calculated using the best (highest) weeks of earnings during the qualifying period, which will range from 14 to 22, depending on the unemployment rate in the client’s region.
Under the Variable Best Weeks approach, employers are encouraged to provide the equivalent of 53 weeksof pay period information in Block 15C of the ROE form. Currently, the paper ROE only has enough space to enter information for 27 weekly pay periods.
For this reason, if you have a weekly pay period and you are using paper ROEs, you can provide the data for pay periods 28 to 53 by attaching a separate sheet to each copy of the ROE. If you prefer, you can use the weekly pay-period worksheet to provide the additional pay period information.
Note: If you use the 53-field electronic ROE, or provide the equivalent information in block 15C of the paper ROE, you will usually receive fewer phone calls and requests for payroll information from Service Canada.
Block 16, Reason for issuing this ROE
We have assigned codes to the most common reasons for issuing an ROE. In Block 16, enter the code that best corresponds to the reason you are issuing the ROE. For details about what each code means and when you should use it, review the table below.
Notes
- Even if an employee is casual or part-time, we still need to know why the employee is no longer working. For this reason, regardless of whether an employee is full-time, part-time, or casual, you must enter a code in Block 16.
- If you are issuing an ROE for two or more reasons, enter the code that applies first in Block 16.
- It is a serious offence to misrepresent the reason for issuing an ROE. If you enter a false or misleading reason for issuing an ROE, you may be subject to fines or prosecution.
- Over the last few years, we have automated the way we process ROEs. In this technological environment, when you include a comment in Block 18, the ROE is removed from the automated processing system and a Service Canada agent has to review it manually. This review slows the process down, and sometimes requires the agent to call you for clarification. For this reason, you should now only enter comments in Block 18 in exceptional circumstances. Do not include comments that only confirm information you have already entered on the form.
Code A - Shortage of work (layoff)
Code A is the most commonly used code. Use this code when the employee is laid off, since a "shortage of work" occurs when an employer has to lay off staff. For example, if you are issuing an ROE because a contract is ending, a season is over, or you are temporarily shutting down operations, use Code A.
For example (this list is not exhaustive):
- end of contract or season
- end of casual/part-time work
- end of school year
- temporary shutdown of operations
- permanent shutdown of operations
- position eliminated/redundant
- company restructuring
- employer bankruptcy or receivership
Code B - Strike or lockout
Use Code B when an employee is on strike or has been locked out of the workplace.
Code C - Return to school
Service Canada is phasing out the use of this code. Instead of Code C, please use one of the following codes:
- If the employee is leaving to return to school, use Code E, Quit. Be sure to enter "Return to school" in Block 18 if you are using a paper ROE. If you are using ROE Web online, choose the "Return to school" option from the drop-down menu.
- If the employee is leaving to participate in a government-approved apprenticeship training program, use Code J, Apprentice training.
Code D - Illness or injury
Use Code D when the employee is leaving work temporarily because he or she is ill or injured.
Code E - Quit
Use Code E when the employee initiates the separation from employment. For example, an employee may quit to take another job, to accompany a spouse who must move for his or her work to another location, to return to school, or to voluntarily retire, or the employee may decide to quit the position permanently because of health reasons.
If you are using a paper ROE, include a comment in Block 18, Comments. For example, you could enter "Take another job," "Follow spouse," "Return to school," "Voluntary retirement," or "Health reasons." If you are using ROE Web online, choose the appropriate option from the drop-down menu.
Note: If the employee is leaving the workplace because of mandatory retirement, see Code G - Retirement.
For example (this list is not exhaustive):
- to take another job
- to relocate with spouse
- to return to school
- to voluntarily retire
- for health reasons
Code F - Maternity
Use Code F only when a birth mother is leaving the workplace to take maternity leave. It does not apply to adoptive parents or birth fathers.
Notes:
- If the birth mother is experiencing an interruption of earnings first because of illness and then because of maternity leave, use Code D, Illness or injury, since you should use the code that applies first. In this case, there is no need to amend the ROE once the employee begins her maternity leave.
- If the employee is a birth father or adoptive parent, see Code P, Parental.
Code G - Retirement
(mandatory/approved under the Work Force Reduction program)
Use Code G when the employee is leaving the workplace because of mandatory retirement or through a Work Force Reduction approved by Service Canada. If you are using a paper ROE and the employee is retiring under an approved Work Force Reduction, enter "Approved work-force reduction" in Block 18. If you are using ROE Web online, choose the "Approved work-force reduction" option from the drop-down menu. See the Work Force Reduction program for details.
Note: If the employee is voluntarily retiring, see Code E, Quit.
Code H - Work-Sharing
Use Code H when the employee is participating in the Service Canada Work-Sharing Program.
Code J - Apprentice training
Use Code J if the employee is leaving the workplace temporarily to participate in a government-approved apprenticeship training program.
Code M - Dismissal
Use Code M when the employer initiates the separation from employment for any reason other than layoff or mandatory retirement (that is, the employee is leaving the workplace because he or she has been dismissed by the employer). Also use this code when the employment is terminated within a probationary period because the employee was not well suited for the position (that is, the employee was not able to satisfactorily perform the duties of the position). If you are using a paper ROE and the employment was terminated within the probationary period, enter "Terminated within probationary period" in Block 18, Comments. If you are using ROE Web online, choose the "Terminated within probationary period" option from the drop-down menu.
Code N - Leave of absence
Use Code N when the employee is leaving the workplace temporarily to take a leave of absence. For example, if the employee is taking any period of unpaid leave, use Code N.
Note:
A leave of absence does not include illness or injury, maternity leave, parental leave, compassionate care leave, or leave for parents to care for a critically ill child —instead, use Code D - Illness or injury, Code F – Maternity, Code P – Parental, or Code Z - Compassionate care/Parents of Critically Ill Children respectively.
Code P - Parental
Use Code P if the employee is leaving the workplace temporarily to take parental or adoption leave.
Note: If the employee is a birth mother, see Code F, Maternity.
Code Z - Compassionate care/Parents of Critically Ill Children
Use Code Z if the employee is leaving the workplace temporarily to claim compassionate care benefits, or benefits for parents of critically ill children.
Code K - Other
The vast majority of reasons for issuing an ROE are covered by the above codes. Use Code K only in exceptional circumstances (see examples below). If none of the above reasons apply to the situation, use Code K, and provide an explanation in Block 18, Comments.
For example (this list is not exhaustive):
- change in payroll/ownership or company name
- change in pay period type
- death of an employee
- Service Canada has requested the ROE
Contact name and telephone number
Also in Block 16, you must enter the full name and telephone number of the person in your organization who is readily available to provide more information or clarification about the reason for issuing the ROE, if Service Canada needs it.
Block 17, Separation payments
In Block 17 (A, B, and C), report all payments or benefits other than regular pay that the employer has paid or will pay to the employee because of the separation. The term separation refers to the period during which an employee experiences an interruption of earnings. The separation can be either final or not final.
It does not matter when the employer makes these separation payments to the employee. For example, the employee can receive these payments or benefits:
- in the final pay period;
- any time after the employee is notified of the interruption of earnings; or
- at a later date during the interruption of earnings (regardless of whether the interruption of earnings is final or not final).
Include all separation payments in Block 17, regardless of whether these payments or benefits are considered as insurable earnings. You must also include any insurable amounts in Blocks 15B and 15C, if necessary. (For details on what payments or benefits are considered insurable, see Annex 1 on types of earnings and insurable hours.)
Note: Do not include in Block 17 any separation payments that have not been paid because of bankruptcy.
Block 17A, Vacation pay
In this block, enter any vacation pay the employer has paid or will pay to the employee because of the separation. The following chart explains the different ways you can pay vacation pay, and whether or not you need to report it in Block 17A.
| Type of vacation pay | Description | Fields required |
|---|---|---|
| Included with each pay | Usually paid as a percentage of the employee's earnings for a pay period. | Do not report the amount in Block 17A. Do not include any comments in Block 18, such as "Included with each pay" or "Paid with every pay." |
| Paid because no longer working | Any vacation pay that is payable to the employee because of layoff or termination of employment. | Include the amount in Block 17A. Do not include any comments in Block 18, such as "17A $$ is included in 15C P.P. 1." |
| Paid for a vacation leave period after the last day for which paid (Example: a paid vacation period during a plant shutdown that will occur while the employee is on leave) | Any vacation pay paid by the employer for a specific period of leave after the date in Block 11, when the employee plans to take vacation leave during the interruption of earnings and the employer granted the leave. | In Block 17A, include the amount. If you are using a paper ROE, include the dates of the vacation leave in Block 18. If you are using ROE Web online, include the dates in the appropriate field. Note: If you will be paying an employee for a vacation leave period immediately after the last day of work, it should not be reported here. In this case, the last day for which paid would be the last day of the period of leave, and the period of leave would not be reported in Block 17A. |
| Anniversary vacation pay payment made for a date that falls after the interruption of earnings | Any vacation pay paid on a specific date (or dates) each year. | In Block 17A, include the amount. If you are using a paper ROE, include the date of the anniversary in Block 18. If you are using ROE Web online, include the date in the appropriate field. |
If there are hours attached to the vacation pay, report them in Block 15A. If you are not sure if there should be hours attached or you do not know the number of hours to report, contact the Canada Revenue Agency for a ruling on your individual situation.
Vacation taken before it is earned
Employers sometimes advance vacation leave to their employees before they earn it. In a situation where employees have taken vacation leave and are later laid off before they earned all the leave, do not show any amount in Block 17A. In this case, employees would actually have an overpayment with the employer. Like all overpayments, you should not report these hours and earnings on the ROE. To ensure amounts on the ROE are correct, you should amend the amount the employee was paid for the pay period in which the employee took the leave to reflect the amount the employee should have been paid. Do not include any comments in Block 18.
Note: If you later determine that you will not be able to recover the money you paid in error to the employee, the money will become a taxable benefit. You must include the amount on the ROE in the pay period during which you determine that you will not be able to recover it. Do not include any insurable hours for this amount in Block 15A.
Block 17B, Statutory holiday pay
The term statutory holiday covers the following days:
- the actual day of the statutory holiday;
- any other day off with pay that replaces a statutory holiday (for example, if Christmas Day falls on a Sunday, an employer may give the following Monday as a day off with pay to replace the statutory holiday); or
- any designated floater days—additional days off with pay that are taken at a time agreed to by both the employee and the employer.
Note: If you are using a paper ROE and you have more than three statutory holidays to report in Block 17B, enter the additional information in Block 18. If you are using an electronic ROE, there are 10 fields available.
Example
Your pay periods are biweekly, ending every other Friday. Hugo's first day of work at your company was September 22, 2009, and his last day was December 18, 2009. He had a two-week break with no work or earnings from November 15 to 28, 2009. He received a daily salary of $75 (each day represents seven hours worked). You pay him for each of the two statutory holidays occurring after his last day: December 25, 2009, and January 1, 2010 ($75 for each statutory holiday – seven hours per day). Hugo's departure is not final,since he will be returning to work on January 6, 2010.
In Block 10, you enter "22/09/2009."
In Block 11, you enter "18/12/2009." This is the actual last day worked, and not a statutory holiday date.
In Block 12, you enter "25/12/2009," since it is the end date for the last pay period.
In Block 15A, you enter "392" as the total insurable hours (56 days x 7 hours per day = 392 hours). Since the departure is not final, this number includes 14 insurable hours for the two statutory holiday days that occurred after the date in Block 11.
In Block 15B, you enter "$4,200" (56 days x $75 per day = $4,200). This amount includes $150 for the two statutory holidays that occurred after the date in Block 11.
In Block 15C, you enter the following amounts for insurable earnings per pay period:
| P.P. | INSURABLE EARNINGS | P.P. | INSURABLE EARNINGS | P.P. | INSURABLE EARNINGS |
|---|---|---|---|---|---|
| 1 | 525.00 | 2 | 750.00 | 3 | 0.00 |
| 4 | 750.00 | 5 | 750.00 | 6 | 750.00 |
| 7 | 675.00 | 8 | 9 | ||
| 10 | 11 | 12 | |||
| 13 | 14 | 15 | |||
| 16 | 17 | 18 | |||
| 19 | 20 | 21 | |||
| 22 | 23 | 24 | |||
| 25 | 26 | 27 |
Legend
- P.P. 1: Final pay period (partial), with $375 in earnings and $150 for statutory holidays
- P.P. 2: Full pay period
- P.P. 3: Nil pay period (no work or earnings)
- P.P. 4, 5, and 6: Full pay periods
- P.P. 7: First pay period (partial)
In Block 17B, you enter the following information:
25/12/2009: $75
01/01/2010: $75
Note: If Hugo's departure is final, you would not include the 14 hours for the statutory holidays in the total insurable hours in Block 15A.
Block 17C, Other monies
In this block, enter any other payments or benefits other than vacation pay (Block 17A) or statutory holiday pay (Block 17B) that the employer has paid or will pay to the employee because of the separation, whether or not the amount is considered as insurable earnings. The following chart provides examples of the types of amounts you should enter in Block 17C.
Note: For paper ROEs, if you need more room, you can use Block 18.
| Type of payment or benefit | Description | Information to enter in Block 17C |
|---|---|---|
| Bonus – closure/loyalty | A closure or loyalty bonus is usually announced as part of a closure agreement. Typically, a condition of payment is that the employee is on staff when the closure is announced and continues to work until all production or clean-up is finished. | Enter "Bonus – closure/ loyalty" and the amount. |
| Bonus – event | An event bonus is paid on the occasion of certain events, such as service anniversaries, fiscal or calendar year-ends, or the signing of collective agreements. | Enter "Bonus – event" and the amount. If you are using a paper ROE, enter the date of the event in Block 18. If you are using ROE Web online, enter the date of the event in the appropriate field. |
| Bonus – holiday | Holiday bonuses are paid to workers to recognize certain holidays (for example, Christmas). | Enter "Bonus – holiday" and the amount. If you are using a paper ROE, enter the date of the holiday in Block 18. If you are using ROE Web online, enter the date of the holiday in the appropriate field. |
| Bonus – production/ incentive | A production or incentive bonus is paid when workers meet or exceed specified levels of production, sales, or service. | Enter "Bonus – production/incentive" and the amount. If you are using a paper ROE, enter the dates of the employment period to which the bonus applies in Block 18. If you are using ROE Web online, enter the dates of the employment period in the appropriate field. |
| Bonus – staying/retention/ contract complete/end of season | A staying/retention/contract complete/end-of-season bonus is paid to workers who agree to and actually do work for the full term of a contract or who complete a certain amount of work, usually within a specified period of time. | Enter "Bonus – staying/ retention/contract complete/end of season" and the amount. |
| Bonus – separation/ retirement | A separation or retirement bonus is usually paid to employees when their employment ends to recognize long years of service. | Enter "Bonus – separation/ retirement" and the amount. |
| Bonus – other | A "Bonus – other" includes any money paid to employees in addition to what is expected or due, or given in addition to their usual compensation (as long as the money is not covered by one of the bonus types described above). | Enter "Bonus – other" and the amount. Describe the bonus in Block 18. |
| Gratuities (also called tips) controlled by the employer | Gratuities (also called tips) are payments controlled by the employer that are made to certain service-sector workers in addition to their regular salary. Gratuities are usually paid as part of the employee's regular salary. Only enter them in Block 17C if they are being paid on separation. | Enter "Gratuities" and the amount. |
| Honorarium payments | Honorarium payments are usually given for services for which fees are not legally or traditionally required. | Enter "Honorarium," the amount, and the to-and-from dates when the services were rendered. If you are using a paper ROE, include the dates of the period to which the honorarium applies in Block 18. If you are using ROE Web online, include the dates in the appropriate field. |
| Pay in lieu of notice | Salary or wages in lieu of notice are paid when the employer has been unable to provide sufficient notification of a layoff or separation. | Enter "Pay in lieu of notice" and the amount. |
| Profit sharing | Profit sharing is a share of profit paid to the employee on termination. | Enter "Profit sharing" and the amount. |
| Retirement leave credits/retiring allowance | Retirement leave credits/retiring allowances are forms of severance pay (often paid in lieu of severance pay, in addition to severance pay, or to enhance severance pay). To qualify as a retiring allowance, the payment must recognize either long service or the fact that a position is being abolished. "Retirement" does not necessarily mean the employee is retiring from the work force—only from a specific position. Retirement leave credits/retiring allowances can include non-insurable accumulated sick leave credits. Accumulated sick leave credits are not considered insurable when they are paid out as part of a retirement leave credit/retiring allowance (if the employee has insurable sick leave credits, see "Sick leave credits" below). For more information on retiring allowances and whether the payments are insurable, contact the Canada Revenue Agency (see the contact information in Annex 1 on types of earnings and insurable hours). |
Enter "Retirement leave credits/retiring allowance" and the amount. |
| Settlement pay | Settlement pay is made to settle an outstanding issue, such as wrongful dismissal. Payment of damages includes any monies that are awarded by a court or a tribunal, or agreed upon in an out-of-court settlement. | Enter "Settlement pay," the amount, and the to-and-from dates (see note below). If you are using a paper ROE, enter the dates in Block 18. If you are using ROE Web online, enter the dates in the appropriate field. Note: If the settlement applies to specific weeks, enter those dates in the required fields. If the settlement does not apply to a specific time period, enter the dates of the final pay period. |
| Severance pay | Severance pay is a form of recognition for years of service paid to compensate for the loss of employment. | Enter "Severance pay" and the amount. |
| Sick leave credits (insurable) | Insurable accumulated sick leave credits are a form of compensation for all or a portion of an employee's unused sick leave. | Enter "Sick leave credits" and the amount. If you are using a paper ROE and if the sick leave credits are paid on an anniversary date, enter the date in Block 18. If you are using ROE Web online, enter the date in the appropriate field. |
| Supplements to maternity leave, parental leave, compassionate care leave and parents of critically ill children leave | These are payments made to an employee by the employer to supplement their EI benefits during periods of maternity leave, parental leave, compassionate care leave and parents of critically ill children leave. They are often called "top-ups." Note: The payment, when added to the employee's weekly EI benefits, cannot exceed the employee's regular weekly earnings and cannot be used to reduce other accumulated employment benefits, such as banked sick leave, vacation leave credits, or severance pay. For more information, see Supplement to Employment Insurance (EI) maternity, parental, compassionate care and parents of critically ill children benefits. |
Even though this type of supplement is not a formal Supplemental Unemployment Benefit (SUB) plan, if you are using ROE Web online, select "SUB plan benefits" in Block 17C. If you are using a paper ROE, enter "Supplement to maternity, parental, compassionate care or parents of critically ill children leave" in Block 17C. Neither the amount nor the date is required. |
| Supplemental Unemployment Benefit (SUB) plan (includes benefits for temporary stoppage of work, training, illness, injury, and quarantine) |
SUB plan benefits are payments made to an employee by the employer to supplement their EI benefits during periods of unemployment because of a temporary stoppage of work (temporary layoff), training, illness, injury, or quarantine. | Enter "SUB plan benefits," since we need to know that the employee is receiving these benefits. However, the amount and the date are not mandatory, since you may not know this information. |
| Other | Use "Other" when the insurable money the employee received does not fit under any other type of payment or benefit. | Enter "Other" and the amount. Be sure to include a comment in Block 18 to describe the type of money the employee received. |
Notes
- Any money that is insurable and does not fit into one of the categories listed in the preceding chart should be included in "Other." Any money that is not insurable and does not fit into one of the categories listed in the preceding chart can be included in either "severance pay" or "retirement leave credits," and not in "Other." Be sure to include a comment in Block 18 describing the type of payment made.
- When you enter insurable earnings in Blocks 17A, 17B, and 17C, you must also add these amounts to the total insurable earnings reported in Blocks 15B and 15C (P.P. 1 field). For example, you will add any amount of vacation pay paid on separation to the totals in Blocks 15B and 15C, since vacation pay is considered to be insurable earnings. However, when the employer pays retirement leave credits/retiring allowances, although you will include the amount of the credits in Block 17C, you will not add that amount to the totals in Blocks 15B and 15C, since retirement leave credits/retiring allowances are not considered to be insurable earnings.
Block 18, Comments
In Block 18, enter any specific details about exceptional circumstances you would like to communicate to Service Canada to help clarify the information on the ROE. This may prevent subsequent phone calls from Service Canada agents.
It is not necessary to reiterate information you have already provided on the form in Block 18. For example, if you enter Code A in Block 16, there is no need to enter a comment in Block 18, such as "temporary shutdown of operations" or "employee layoff."
Note: Over the last few years, we have automated the way we process ROEs. In this technological environment, when you include a comment in Block 18, the ROE is removed from the automated processing system and a Service Canada agent has to review it manually. This review slows the process down, and sometimes requires the agent to call you for clarification. For this reason, you should now only enter comments in Block 18 in exceptional circumstances. Do not include comments that only confirm information you have already entered on the form. See the tables at Block 16, Reason for issuing this ROE, Block 17A, Vacation pay, and Block 17C, Other monies for details on the types of comments to enter in Block 18.
Block 19, Paid sick/maternity/parental/compassionate care/parents of critically ill children leave or group wage loss indemnity payment
You only need to complete Block 19 if the employee received any insurable sick leave, maternity leave, parental leave, compassionate care leave, parents of critically ill children leave or group wage-loss insurance payments from the employer, or if the employee is receiving any group wage-loss indemnity plan payments from a third party.
Notes
- When employees receive insurable sick leave, maternity leave, parental leave, compassionate care leave or parents of critically ill children leave payments from the employers, do not complete an ROE until after the payments are exhausted. The last day to which these payments apply is considered to be the last day for which paid. Enter this date in Block 11.
- When an employee receives wage-loss payments from either the employer or a third party, complete the ROE after the employee's last day of work before the wage-loss payments start. If the wage-loss payments are insurable, you will need to complete a second ROE for the period during which the employee received the wage-loss payments.
| Type of payment | Definition | Information to enter in Block 19 |
|---|---|---|
| Insurable sick leave paid by the employer (paid sick leave) | Insurable sick leave payments from the employer. EI premiums have been deducted. | In the "Payment start date" box, enter the first day the employer paid the sick leave.
In the "Amount" box, enter the amount the employee was receiving, either per day or per week. Be sure to check off either the "per day" or "per week" box. If the amount varies each week, enter an average or estimated amount and explain in Block 18 that the amount is either an average or an estimate.
|
| Insurable maternity, parental, compassionate care or parents of critically ill children leave paid by the employer (not an employer-paid top-up) | Maternity, parental, compassionate care or parents of critically ill children leave payments the employer pays, usually at 100% of regular earnings, after the employee stops working. EI premiums have been deducted. These payments are considered to be insurable earnings. Note: This type of payment does not include supplements or top-ups to their EI benefits. You have to report top-up payments in Block 17C. |
In the "Payment start date" box, enter the first day the employer paid the maternity, parental, compassionate care or parents of critically ill children leave payments. In the "Amount" box, enter the amount the employee was receiving, either per day or per week. Be sure to check off either the "per day" or "per week" box. If the amount varies each week, enter an average or estimated amount and explain in Block 18 that the amount is either an average or an estimate. Notes
|
| Insurable wage-loss insurance (WLI) plan payments | Insurable WLI plan payments the employer pays after the employee stops working. EI premiums have been deducted. | In the "Payment start date" box, enter the first day the employer paid the WLI plan payments.
In the "Amount" box, enter the amount the employee was receiving, either per day or per week. Be sure to check off either the "per day" or "per week" box. If the amount varies each week, enter an average or estimated amount and explain in Block 18 that the amount is either an average or an estimate.
|
| Non-insurable wage-loss insurance (WLI) payments | Non-insurable WLI plan payments paid by a third party to the employee after the employee stops working. EI premiums are not deducted, and the payments are not considered as insurable earnings. Often, the details of these plans are not known to the employer. |
In the "Payment start date" box, enter the first day the third party paid the WLI payments. In the "Amount" box, enter the amount the employee is receiving from the third party, either per day or per week (if known). If you do not know the exact amount, enter an approximate amount and indicate in Block 18 that the amount is approximate. Be sure to check off either the "per day" or "per week" box. Notes
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Block 20, Language
In this block, indicate whether the employer prefers to communicate in English or French.
Block 21, Telephone number of issuer
In this block, enter the full 10-digit telephone number of the person who is able to answer questions from Service Canada about the information entered on the ROE.
Block 22, Certification
In this block, the person who is completing the ROE certifies that the information on the ROE is correct.
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