Calculate employment insurance eligibility with payroll tax software
July 22, 2013
As employers contribute and transfer taxes for benefits as part of Canadian payroll legislation, there is good news for the economy based on data from May. As the financial strength of Canada develops with a 0.1 percent growth of gross domestic product in April, businesses can use payroll tax software to accurately calculate their revenue to show gains from previous months. As another sign of an expanding economy, claims for employment insurance benefits experienced a decrease in May, according to Statistics Canada.
Employment insurance benefit claims decreased in May
Funded by a payroll tax under federal jurisdiction, EI benefits can be obtained by individuals who file the claim and meet the following criteria: they are unemployed, are able to work and cannot find a job. Those who wait an entire month after losing their job may have their benefits forfeited, according to Service Canada. In a report by Statistics Canada, the number of people receiving regular EI benefits decreased by 12,300 to 508,500, a rate of -2.4 percent, in May. Comparing year-to-year, EI beneficiaries was down 7.4 percent in May 2012. As the number of EI claims continue a downward trend, different factors can contribute to this decline including individuals going back to work or having already depleted their regular benefits.
Determine employment insurance eligibility
By region, most of Canada experienced a reduction in EI beneficiaries in May, with few changes reported in some provinces including Newfoundland and Labrador and Alberta. The biggest changes in claims depending on occupation were seen in the primary industry with a rate of -5.5 percent while the manufacturing and utilities industry saw the second biggest with -3.7 percent. With different regions and industries being affected by EI benefits, employers must determine be able to determine whether their employees have accumulated enough work hours to receive benefits before individuals can become eligible for EI.
Calculate work hours using payroll technology
To help with tax and hour calculations, businesses can utilize payroll tax software to monitor and and accurately record employee data. Companies may need payroll technology even more as the decrease in EI claims might be contributed to more citizens entering the workforce. When broken down by demographics, men who were 55 years and older led the largest decrease in claims with -4.9 percent in May followed by women who were 15 to 24 years old with -4.4 percent.