Terminations, Leaves and Records of Employment

Flashcards on terminations of employment, leaves, employee status changes and related payments and documentation.

Termination of Employment

Occurs when there is a severing of the employee-employer relationship; can be employee- or employer-initiated.

Leaves

Occur when an employee takes a period of time off work, usually with the intent to return.

Record of Employment (ROE)

Must be issued when there is an interruption of earnings, such as quitting, layoff, termination, or seven consecutive days without work and insurable earnings.

Wages in Lieu of Notice

A payment made to an employee in place of providing written notice of termination. Considered income from employment and are subject to statutory deductions (except in Quebec).

Vacation Pay on Termination

Accrued vacation pay that employees are entitled to upon termination, less any vacation pay already paid. Considered income from employment and is subject to statutory deductions.

Severance Pay

Legislated under the federal Canada Labour Code and Ontario’s Employment Standards Act, 2000. Not considered income from employment, falls under the definition of a retiring allowance, and is subject to lump-sum tax.

Retiring Allowances

An amount of money paid to officers or employees once the employment relationship has been severed. Not considered income from employment (except for legislated severance pay.) Subject to lump-sum tax (except for wages in lieu of notice paid to a Quebec employee).

Eligible Portion of Retiring Allowance

Can be transferred to a Registered Retirement Savings Plan (RRSP) or a Registered Pension Plan (RPP), with no income tax withholding at source.

Legislated Leaves

Include bereavement, jury duty, family situations, compassionate care, maternity, parental, paternal, adoption, child care, reservist, sick, voting, and wedding leaves (varying by jurisdiction).

Payments on Leave

Considered income from employment and are subject to all statutory deductions.

Employee Status Change

An event that changes an employee’s working status such as activating, terminating, re-hiring, or placing an employee on leave.

Status Change Options

Resulting Status (Active, On Leave, Terminated), ROE Form (Produce, Amend, Do not produce), and Current Pay (Process, Do not process).

ROE Filing Deadlines (Electronic)

Employers with weekly, bi-weekly, or semi-monthly pay period, have five calendar days after the end of the pay period and monthly, or every four weeks, employers must issue electronic ROEs on the earlier of up to five (5) calendar days after the end of the pay period when the interruption of earnings begins or up to 15 calendar days after the first day of the interruption of earnings

Blocks pre-printed on ROE by Ceridian

Blocks that are pre-printed by Ceridian on the Record of Employment are: 3 – Employer’s payroll reference no. 4 – Employer’s name and address 5 – CRA Business No. (BN) 6 – Pay period type 7 – Postal code 8 – Social Insurance No. 9/9A – Employee’s name and address, postal code 10 – First day worked 16 – Contact Information 21 – Telephone No. 22 – Name of Issuer

Blocks that must be completed on ROE by the client

Blocks that must be completed by the client are displayed in red: 11 – Last day for which paid 12 – Final pay period ending date 13 – Occupation (optional) 14 – Expected date of recall 16 – Reason for issuing the Record of Employment 17 – Payments or benefits (other than regular pay) paid in or in anticipation of the final pay period or payable at a later date 17A – Vacation Pay 17B – Statutory Holiday Pay 17C – Other Monies (specify) – this would include wages in lieu of notice, severance payments and retiring allowances 18 – Comments 19 – Only complete if paid sick/maternity/parental leave or group wage loss indemnity payment after the last day worked

Insurable Earnings History Page

Functionality to view and/or change the Employment Insurance (EI)/ Québec Parental Insurance Plan (QPIP) history for an employee and to correct errors made on a previous payroll.

Uses of the Insurable Earnings History Page

Moving insurable earnings/hours from one pay period to another, editing insurable earnings/hours for a specific pay period, and viewing employee EI history.