Page 31 - A Canuck's Guide to Financial Literacy 2020
P. 31

31


               As mentioned, cash flow planning is all about budgeting and making sure that you have the
               cash flow to pay your bills. In this chapter, we've highlighted some important income
               replacement programs such as Employment Insurance in addition to discussion issues that
               might matter to you the most, such as childcare deductions and paying your professional
               dues.


               Employment Insurance


               Employment Insurance also known as E.I benefits aims to provide temporary income
               replacement to Canadians who may have lost their jobs through no fault of their own due to
               re-structuring, shortage of work, seasonal lay-offs, etc. Run by Employment and Social
               Development Canada, (ESDC), the program aims to minimize the financial hardship during
               this difficult time by providing a taxable weekly benefit that can last for 14-45 weeks.


               Eligibility


               To qualify for regular benefits, you must meet the following criteria:

                  ▪  Lost your job through no fault on your own (restructuring, shortage of work, seasonal)
                     Keep in mind that if you quit your job voluntarily, you may not qualify for EI.

                  ▪  You paid into employment insurance during time of employment
                  ▪  Have been unemployed and without salary for at least a week in the last 52 weeks
                  ▪  You were employed for a minimum of 420 and 720 hours during the qualifying period
                     which is 52 weeks or since the start of your last EI claim, whichever is shorter.

                  ▪  You’re ready and willing to work each day and actively looking for employment. (You
                     must keep a list of employers that you’ve contacted about employment opportunities)


               From time to time, you have to do bi-weekly reporting in order to confirm your eligibility on a
               continuous basis.


               You will not qualify for EI benefits if

                  ▪  If you left your job voluntarily
                  ▪  If you’re in jail
                  ▪  If you were dismissed with cause
                  ▪  If you’re part of a lockout or strike


               Qualifying Period


               To qualify for employment insurance, you must have worked a certain number of hours. The
               minimum number of hours is between 420 and 700 hours depending on the unemployment
               rate in the area. The hours must have been accumulated during the qualifying period.

               The qualifying period is the shorter of:
   26   27   28   29   30   31   32   33   34   35   36