When employees leave their employers, the employees may be eligible for Employment Insurance benefits, but they need a Record of Employment to apply. As an employer, it’s your responsibility to give them this document. If you dismiss or lay off an employee, you must fill out an ROE. You must also fill out an ROE if the employee quits, retires, or experiences any other event that causes an interruption of earnings for at least seven days. If employees leave for pregnancy, injury, illness, or adoption, you may continue to pay them, but if their earnings drop below 60% of their salary, you must issue an ROE even though they’re still with the company and may plan to return in the future. You can use ROE Web to fill out and submit the form online. If you use ROE Web, you don’t have to print a copy for your employee; the service will automatically send the information to Service Canada, the organization that oversees EI claims. Paper ROEs must be completed with five days of the seventh day of the interruption of earnings, and electronic ROEs must be completed within five days of the last day of the pay period in which the interruption of earnings occurs. If your employee leaves the company permanently, you may also want to fill out a T4 slip. That requires similar information to the ROE in terms of employee information and earnings details, and filling it out early can save time during tax season. Staying on top of required paperwork and payroll tasks is essential for employers, and it can help you avoid a lot of potential headaches in the future.

References & Resources

• canada.ca
• quickbooks.intuit.ca