Guidelines for Fishing Sale Price Adjustments or Bonuses

The Guidelines for Fishing Sale Price Adjustments or Bonuses

In many cases, an adjustment of fishing sale prices often takes place after the employers have made the initial payment. In some cases, the adjustment of fishing sale prices could also takes place after the employers have issued the Record of Employment (ROE). To amend this, the employers would need to submit the amended Record of Employment (ROE) as soon as they have the new information. They would need to add the price adjustment to the original amount they paid for the particular catch. Thereafter, they would need to record it in the period during which the fishing took place.

For instance, an employer issued a Record of Employment (ROE) in September in the following manner:

• Block 6A – Trip Start Date: September 08

• Block 6B – Trip End Date: September 15

• Block 6C – The Share of Insurable Earnings ($): $1,200

Thereafter, this employer paid a sale price adjustment of $500 in December. As such, the amended Record of Employment (ROE) would need to reflect the new payment. Therefore, the amended Record of Employment (ROE) would need to show the following details:

• Block 6A – Trip Start Date: September 08

• Block 6B – Trip End Date: September 15

• Block 6C – The Share of Insurable Earnings ($): $1,700

The authorities require employers to submit the amended Records of Employment (ROEs) once they have made all the appropriate sale price adjustments.

Block 3: The Employer’s Payroll Reference Number

In this block, the employers would need to enter the number they are using for identifying the fisher in their payroll records (if the employer has one).

Block 4: The Employer’s Name and Address

The employer would need to enter the employer’s name and address in this block. For this, the employers would need to use the same name and address that appears on their Canada Revenue Agency (CRA) remittance form, which they would typically use for reporting their payroll source deductions i.e. PD7A.

Block 5: The Employer’s Postal Code

In this block, the employer would need to enter the employer’s postal code.

Block 6: The Insurable Earnings

In this block, the employer would need to enter the fisher’s insurable earnings for a period of employment up to a maximum of 31 successive weeks or for the period of employment since the last Record of Employment (ROE) – whichever is shorter.

Block 6A: The Trip Start Date for Fresh Catch Only

The employer would need to record the date on which the fisher left the wharf or dock to commence fishing or other harvesting from the sea or any other body of water. It is worth highlighting that the employers do not need to specify a start date for cured catch.

Block 6B: The Trip End Date (Fresh) or Date of Purchase (Cured)

In the case of cured catch, the employer would need to enter the date of delivery. Similarly, for a fresh catch, the employer would need to enter the date on which the fisher returned to the wharf. Alternatively, the employer could also specify the date of delivery or sale in case the employer sold or delivered the catch in the body of water. In some cases, the employer might hold a fresh catch after the return to the wharf. In this scenario, the employer would need to fill the trip end date as the date on which the fisher returned to the wharf.

Note for Blocks 6A and 6B:

• The skipper or the head fisher would need to provide the dates in Blocks 6A and 6B to the buyer

• It is worth highlighting that the buyer’s responsibility does not involve witnessing the departure, but merely to obtain the information and record it as provided

Block 6C: The Share of Insurable Earnings ($)

In this block, the employer would need to enter the dollar share of the insurable earnings in accordance with the crew’s sharing arrangement. If the fisher is a member of the crew and is the owner or lessee of the fishing vessel or gear used by the crew for making the catch, the employer would need to deduct 25 percent of the gross value of the catch. In addition, the employer would need to deduct the wages and shares of the other members of the crew as the example illustrates below:

• Gross value of the catch: $10,000

• Less 25 percent of the expenses: $2,500

• Less total wages and catch shares of the other crew members: $5,000

• Insurable earnings: $2,500

Note for British Columbia only:

• In the case of a British Columbia pool fishery, the employer would need to allocate the insurable earnings only to the period during which the crew member participated in making the catch

• This would typically include activities such as:

  • Working on the cork line

  • Assisting in the dry up process or,

  • Packing the catch of any boats in the pool

Block 7: The Canada Revenue Agency (CRA) Business Number (BN)

In this block, the employer would need to enter the Business Number (BN) used for reporting the fisher’s Employment Insurance (EI) premiums to the Canada Revenue Agency (CRA). In some cases, employers might have multiple Business Numbers (BNs) for reporting payroll source deductions. In this case, the employer would need to ensure that they enter the appropriate Business Number (BN). An employer’s Business Number (BN) would typically feature nine numbers followed by the letters ‘RP’ and four numbers. Employers would also need to ensure that they enter all 15 characters in the Record of Employment (ROE).

Block 8: The Name and Address of the Self-Employed Fisher

The employer would need to enter the name and the address of the self-employed fisher that they have on file in this block. To enter the name of the self-employed fisher, the employer would need to write the first name and the initials, followed by the family name. For entering the address of the self-employed fisher, the employer would need to specify the postal code as well.

Block 9: The Social Insurance Number (SIN)

The employer would need to enter the nine digit Social Insurance Number (SIN) of the self-employed fisher in this block. The authorities accord immense importance to enter the correct Social Insurance Number (SIN) on the Record of Employment (ROE). This is because Service Canada would not be able to process a claim for Employment Insurance (EI) benefits without this number.

Block 10: The Commercial Fishing Vessel Number (CFVN)

In this block, the employer would need to specify the vessel number (if the employer has one).

Block 11: The Reason for Issuing this Record of Employment (ROE)

The employer would need to indicate the reason for separation in this section as ‘Other’ or ‘End of Fishing’. In case the reason for issuing the Record of Employment (ROE) is ‘Other’, the employer would need to provide an explanation in Block 12, Comments. It is worth highlighting that the authorities consider misrepresentation of the reason for issuing the Record of Employment (ROE) as a serious offence. Some of the most common reasons for issuing the Record of Employment (ROE) for ‘Other’  reasons include:

• Shortage of work

• Strike or lockout

• Return to school

• Illness or injury

• The fisher quit working

• Pregnancy or maternity

• Retirement

• Work sharing

• Apprentice training

• Dismissal

• Leave of absence

• Parental

• Compassionate care or parents or critically ill children or,

• Other reasons as specified by the fisher

Block 12: The Comments

In Block 12, the employer would need to enter any specific details about exceptional circumstances that the employer might want to communicate to Service Canada. This would be useful for helping clarify any information specified on the Record of Employment (ROE). This would be useful in preventing subsequent phone calls from Service Canada agents. Such phone calls could typically involve seeking details on the reason for separation or the details of a Supplemental Unemployment Benefit (SUB) payment.

In some cases, the employer might have already specified this information elsewhere on the Record of Employment (ROE). In this scenario, the authorities do not require the employer to repeat this information in Block 12.

Block 13: The Certification

In this block, the person completing the Record of Employment (ROE) would need to certify that the information specified on the Record of Employment (ROE) is correct.

More Information

Situations could arise where employers require additional information about the insurability of earnings or hours. For this, they would need to contact the Canada Revenue Agency (CRA). In addition, employers might find it worthwhile to go through the following Canada Revenue Agency (CRA) sources of information:

• T4001 – Employer’s Guide – Payroll Deductions and Remittances

  • Chapter 3 contains details on insurable employment, earnings and hours and calculating Employment Insurance (EI) premiums

• T4130 – Employer’s Guide – Taxable Benefits and Allowances

  • This contains details for employers who provide benefits or allowances to employees

For more information pertaining specifically to self-employed fishers, readers would need to go through the Canada Revenue Agency (CRA) publication i.e. T4005 – Fishers and Employment Insurance (EI).