Government calls on employers to reduce payroll mistakes.
In January 1997, a new hours-based system was introduced for employment insurance purposes.
At that time, it was anticipated that the new system would simplify the Record of Employment (ROE) completion process for employers, resulting in a marked improvement in the quality of ROEs received by Human Resources Development Canada (HRDC). It hasn’t.
Internal statistics compiled by HRDC show that although there has been a continuous improvement in ROE quality, error levels still remain undesirably high. The government is asking employers to review ROE reporting to help stamp out errors.
The table on page 23 summarizes the types of errors that were found on ROEs during a 1999 sampling.
It appears that employers are still experiencing the most difficulties in completing Blocks 15 and 17 accurately. In completing these blocks, therefore, it may be helpful for employers to review the following guidelines.
Block 12: Final pay period ending date. The date in this block must be the last day of the pay period in which the last day for which the individual was paid fell (for example, the date in Block 11). This date is not to be confused with the date on which a paycheque or separation monies were issued to the individual.
Block 15A: Total insurable hours. This block must contain total insurable hours for the number of pay periods according to table A.
For example, employers with a weekly pay period would be required to provide total insurable hours in the last 53 consecutive pay periods in Block 15A, or less if the period of employment was shorter than 53 weeks. Do not overlap periods covered by a previously issued ROE.
Blocks 15B or 15C: Total insurable earnings. Only one of these blocks must be completed. To help determine which of these blocks you must complete, you may wish to ask yourself the following question.
Were there any pay periods for the period requested in table B or since the first day worked (for example, the date in Block 10) whichever is shorter, where the individual had no work and no earnings?
•If the answer to this question is “No,” then you will only need to complete Block 15B by entering the total insurable earnings covering the period of employment according to table B.
•If the answer to this question is “Yes,” then you will only need to complete Block 15C. Commencing with the final pay period in “box 1,” you must report the total insurable earnings in each consecutive pay period for the number of pay periods required according to table B. For any pay period(s) that have no work and no earnings, you are required to write the word “Nil.”
Block 15B or 15C must also include all other insurable earnings paid on or in anticipation of the separation of employment (for example, vacation pay, wages in lieu of notice pay, and so on). These monies must also be listed separately in Block 17. An exception to this rule would be retiring allowances or severance payments that are not to be included in Blocks 15B or 15C since they are not considered insurable earnings. These payments must, however, still be reported in Block 17C. These payments may have an effect on the amount of EI benefits the claimant receives.
Block 19: Paid sick/maternity/parental leave or group wage loss indemnity payments. Where an individual is eligible for an employer-paid sick, maternity, parental or adoption leave, or is entitled to payments under a wage-loss indemnity plan, employers are required to enter in this block the date the payments will commence and the weekly or daily rate.
Circle the type of payments made (sick, maternity or parental or group wage-loss payments), and explain any additional details in Block 18, “Comments.” These payments may have an effect on the amount of EI benefits the claimant receives.
Additional information on completing the ROE is available on the Internet at: www.hrdc-drhc.gc.ca/insur/common/employr.shtml#100. Should you wish to speak with a ROE assistance person or arrange to attend an information seminar, you may call one of the telephone numbers listed at the back of HRDC’s Employment Insurance — 2000 Guide for Employers.
Gerry Kinna is the editor of The Canadian Payroll Manager newsletter, and a contributing editor to The Canadian Payroll Manual series, both published 10 times a year by Carswell. For more information contact Christy MacDonald at (416) 609-8000.
At that time, it was anticipated that the new system would simplify the Record of Employment (ROE) completion process for employers, resulting in a marked improvement in the quality of ROEs received by Human Resources Development Canada (HRDC). It hasn’t.
Internal statistics compiled by HRDC show that although there has been a continuous improvement in ROE quality, error levels still remain undesirably high. The government is asking employers to review ROE reporting to help stamp out errors.
The table on page 23 summarizes the types of errors that were found on ROEs during a 1999 sampling.
It appears that employers are still experiencing the most difficulties in completing Blocks 15 and 17 accurately. In completing these blocks, therefore, it may be helpful for employers to review the following guidelines.
Block 12: Final pay period ending date. The date in this block must be the last day of the pay period in which the last day for which the individual was paid fell (for example, the date in Block 11). This date is not to be confused with the date on which a paycheque or separation monies were issued to the individual.
Block 15A: Total insurable hours. This block must contain total insurable hours for the number of pay periods according to table A.
For example, employers with a weekly pay period would be required to provide total insurable hours in the last 53 consecutive pay periods in Block 15A, or less if the period of employment was shorter than 53 weeks. Do not overlap periods covered by a previously issued ROE.
Blocks 15B or 15C: Total insurable earnings. Only one of these blocks must be completed. To help determine which of these blocks you must complete, you may wish to ask yourself the following question.
Were there any pay periods for the period requested in table B or since the first day worked (for example, the date in Block 10) whichever is shorter, where the individual had no work and no earnings?
•If the answer to this question is “No,” then you will only need to complete Block 15B by entering the total insurable earnings covering the period of employment according to table B.
•If the answer to this question is “Yes,” then you will only need to complete Block 15C. Commencing with the final pay period in “box 1,” you must report the total insurable earnings in each consecutive pay period for the number of pay periods required according to table B. For any pay period(s) that have no work and no earnings, you are required to write the word “Nil.”
Block 15B or 15C must also include all other insurable earnings paid on or in anticipation of the separation of employment (for example, vacation pay, wages in lieu of notice pay, and so on). These monies must also be listed separately in Block 17. An exception to this rule would be retiring allowances or severance payments that are not to be included in Blocks 15B or 15C since they are not considered insurable earnings. These payments must, however, still be reported in Block 17C. These payments may have an effect on the amount of EI benefits the claimant receives.
Block 19: Paid sick/maternity/parental leave or group wage loss indemnity payments. Where an individual is eligible for an employer-paid sick, maternity, parental or adoption leave, or is entitled to payments under a wage-loss indemnity plan, employers are required to enter in this block the date the payments will commence and the weekly or daily rate.
Circle the type of payments made (sick, maternity or parental or group wage-loss payments), and explain any additional details in Block 18, “Comments.” These payments may have an effect on the amount of EI benefits the claimant receives.
Additional information on completing the ROE is available on the Internet at: www.hrdc-drhc.gc.ca/insur/common/employr.shtml#100. Should you wish to speak with a ROE assistance person or arrange to attend an information seminar, you may call one of the telephone numbers listed at the back of HRDC’s Employment Insurance — 2000 Guide for Employers.
Gerry Kinna is the editor of The Canadian Payroll Manager newsletter, and a contributing editor to The Canadian Payroll Manual series, both published 10 times a year by Carswell. For more information contact Christy MacDonald at (416) 609-8000.
