Prime Minister Justin Trudeau has committed “up to $27B in direct support to Canadian workers and small businesses and up to $55B in tax deferrals.” These supports come in the form of relief programs such as the implementation of a temporary wage subsidy program for small business to offset the costs of keeping workers employed during this time of hardship.
If your company is in the position of having to issue an ROE for your employees, it is important to ensure you are correctly coding them as this will determine the type of benefit program that will be utilized.
CODE D – Illness or Injury
For employees “who are unable to work because of illness, injury or quarantine, to allow them time to restore their health and return to work”. This benefit will allow for up to 15 weeks of replacement income for eligible claimants. The standard 1-week waiting period will no longer apply for this benefit. (Source: Canada.ca)
CODE A – Shortage of Work
For employees who will be laid off due to company downsizing or shut-down. Applicable for business affected by reorganization due to COVID19.
CODE N – Leave of Absence
For employees who wish to voluntarily leave the workplace.
When completing ROE’s for your employees, please refrain from adding comments in Block 18 as this will delay processing. Also, if this is anticipated to be a temporary layoff, you may not need to pay out severance or leave balances. Please refer to your payroll department for further information.
Updates Announced March 18, 2020:
If you don’t have access to paid sick leave and do not qualify for EI sick benefits there has been an emergency care benefit announced that will be comparable to the EI sick benefits program. This program is available for those who become ill, are required to self-isolate or have to care for a family member with COVID19.
A COVID19 emergency support benefit has also been announced for those who have lost their jobs due to the global pandemic. This benefit will also apply to self-employed small business owners who have to close operations.
This situation is changing day by day so for further details on these and other relief programs and for the most up to date information, please visit www.canada.ca.
If you have any payroll related questions or would like to discuss a payroll continuity plan, please feel free to contact GET Payroll Solutions.