Block 12: The Final Pay Period Ending Date
In Block 12, the employers would need to enter the end date of the final pay period. This would include the date the employers have entered in Block 11. It is worth mentioning that the date in Block 11 and the date in Block 12 will usually be different dates. The only instance when these dates will be the same will be when the employee’s last day paid corresponds to the last day of the pay period. However, employers would need to ensure that the date in Block 12 can never be earlier than the date in Block 11.
For instance, consider a situation where an employer has a monthly pay period. In this case, the end date will be the last day of each month. Christopher began working for this employer on March 15, 2010. Thereafter, Christopher ceased working for this employer on March 20, 2016. During these six years, no interruption of earnings took place. As such, the employer did not issue a Record of Employment (ROE) to Christopher. In this scenario, in Block 10, the employer would need to specify 15 March, 2010. In Block 11, the employer would need to enter March 20, 2016. Similarly, in Block 12, the employer would need to enter 31 March, 2016. This is because that is the end date of the final pay period that includes the last day paid.
Note:
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Employers would typically use the weekly averaging formula for making various calculations
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In this scenario, they would need to use the Saturday of the week that contains the last day for which paid as the date they need to enter in Block 12
Block 15A: The Total Insurable Hours
Employers would need to go through Annex 1 for understanding the types of earnings and insurable hours referred to in this guide. It is worth mentioning that they would be able to find Annex 1 in Chapter 4 of this series. Going through this guide would enable employers to assess whether the hours are insurable.
There are three steps by which employers could calculate the number of hours that they would need to enter in Block 15A. These steps comprise:
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Determining the number of consecutive pay periods that the employers need to use
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Determining which hours are insurable and,
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Calculating the total insurable hours for the employee
Block 15B: The Total Insurable Earnings
There are three steps by which employers could calculate the total insurable earnings that they would need to enter in Block 15B. These steps comprise:
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Determining the number of consecutive pay periods that the employers need to use
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Determining which earnings are insurable and,
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Calculating the total insurable earnings for the employee
It is worth mentioning that employers might want to complete Block 15C before they complete Block 15B. This is applicable even if they do not require to fill in Block 15B. Thereafter, they would need to fill out Block 17. Doing so might make it easier for employers to calculate the correct amount that they need to enter in Block 15B. It might also reduce the number of calls that employers receive from Service Canada that request for additional information. This chapter provides instructions on the manner in which employers would need to complete Block 15C.
Note:
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In some situations, employers might pay their employees in foreign currency
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In this scenario, the employers bear the responsibility for converting the foreign currency into Canadian dollars for the purpose of completing the Record of Employment (ROE)
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Employers would need to calculate weekly average amounts for the employee’s earnings over the period of employment that they have reported on the Record of Employment (ROE)
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This is usually done in cases where:
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An employee’s earnings might comprise commissions only or salary and irregularly paid commissions – this would typically be the case with real estate agents or commission salespeople or,
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An employee has irregular pay periods such as some contract workers typically do
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For more details, employers would need to refer to the notes given in the section titled ‘How to Use the Weekly Averaging Formula’
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Situations could arise where unpaid wages (that do not include amounts for overtime or termination pay) remain due to employees on separation
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This would typically be the scenario because of the employer’s bankruptcy, receivership or impending receivership
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In this scenario, the employer would still need to include the hours and the earnings on the Record of Employment (ROE)
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Employers would need to ensure that the amounts that they include in Blocks 15B and 15C reflect the actual amounts that the employee earned
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As such, employers would need to avoid including any amounts that they paid in error to the employees on the Record of Employment (ROE)
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In situations where the employer determines subsequently that the employer would not be able to recover the money that they paid in error to the employee, the money paid would become a taxable benefit
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In this scenario, the employer would need to include this amount on the Record of Employment (ROE) in the pay period during which the employer determines that the employer would not be able to recover it
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Block 15C: The Insurable Earnings by Pay Period
It is worth mentioning that there is a difference between the paper Record of Employment (ROE) and the electronic Record of Employment (ROE). This is especially so in terms of the number of pay periods of information that the authorities require employers to provide in Block 15C.
The Guidelines for Completing Block 15C on the Paper Record of Employment (ROE) – 27 Fields
The authorities only require employers to complete Block 15C if the employee did not earn any insurable earnings in one or more pay periods. This is especially so if the employer is using a paper Record of Employment (ROE). In Block 15C on the paper Record of Employment (ROE), there are 27 fields in which the employers need to report insurable earnings. This typically allows for a maximum of 27 weekly pay periods.
In Block 15C, the employers would need to provide the payroll data for the required number of pay periods as the chart that follows indicates. In case the period of employment is shorter, employers would need to provide the payroll data for fewer pay periods. The employers would need to enter the insurable earnings the employer received for each full, partial or nil pay period. To do this, employers would need to complete Block 15C. They would need to ensure that they enter the insurable earnings for the final pay period in the first pay-period field (the one marked 1 in the PP column), the second last pay period in the second pay-period field (i.e. PP 2), and so on.
In case of any nil pay periods with no insurable earnings, employers would need to enter 0.00. Employers would need to include both dollars and cents. In addition, they would need to avoid rounding off the totals. Employers would also need to avoid using the dollar sign. In PP 1, employers would need to include any insurable amounts that they reported in Block 17 Separation Payments.
Note:
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The authorities introduced a new way of calculating a claimant’s Employment Insurance (EI) benefit rate on April 07, 2013
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This new method of calculating the benefit rate takes into account the employee’s best weeks in the last year
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Because of this, the authorities require employers to complete Block 15C based on the instructions given for completing the electronic 53 field Record of Employment (ROE)
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This is applicable even if there are not any pay periods where the employee did not earn any insurable earnings
The Guidelines for Completing Block 15C on the Electronic Record of Employment (ROE) – 53 Fields
Employers using electronic Records of Employment (ROEs) would need to complete Block 15C. Then, they would need to provide the equivalent of 53 weeks of payroll data. They would need to provide fewer weeks of payroll data if the period of employment is shorter than 53 weeks. They would need to ensure that they enter the insurable earnings for the final pay period in the first pay-period field (the one marked 1 in the PP column), the second last pay period in the second pay-period field (i.e. PP 2), and so on. In case of any nil pay periods with no insurable earnings, employers would need to enter 0.00.