EI premium reduction and how to return premium reduction to employees

oxalis

Hi,

1. How employee benefit plan qualifies for EI premium reduction
   • employee compensation NOT REDUCED even if additional EI benefits are given in same period
   are we eligible to receive both employee benefit plan and EI benefits at the same time? my understanding is that is employee benefit plan is more beneficial then employee will receive that instead of the EI

2. how to return premium reduction to employees
   • written agreement
   • cash back on 5/12 of company savings
   can you please explain what these mean?

Thank you

Staff-T1

Yes an employer plan is deemed to be then "first payer" and EI is deemed to be a second "payer" of disability benefits. Any payments received from a short-term disability plan reduces the EI benefit paid for the same week.

• written agreement just means that -> a written agreement on how the savings will be returned to the employee if the cost to the EI fund is reduced should the employer operate a short-term disability plan for employees
• 5/12 of the aforementioned savings cost to the EI fund should be divided amongst employees. Basically with a ST disability plan, the employer's contributions to the EI plan should be say 5000 less (making up a savings number). The employer then has to share 5000*5/12 with the employees