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EI Premium Reduction Program
Canada
Money for employers
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateSeptember 22, 2020
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Employment and Social Development Canada (ESDC)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
You could get a premium reduction in the short-term disability benefits you pay to your insured employees.
grant_single_labels|terms_and_conditions
The EI Premium Reduction Program offers employers lower EI premium rates by providing short-term disability plans that qualify under specific conditions. This reduction aids in cost efficiency for employers while ensuring employee benefits.
- Employers can obtain reduced EI premium rates when employees are covered by a qualifying short-term disability plan.
- Rates of premium reduction are categorized based on the type of short-term disability plan provided and the duration it meets the program’s requirements.
- The reduction rate is expressed as a percentage of the employee's insurable earnings, impacting the employer's premium calculations.
- Employers must continue providing five-twelfths of the savings from the reduction to the employees covered by the plan.
- Reduced rates require the employer to wait for an entitlement decision from Service Canada before applying the new rate.
grant_single_labels|projects
grant_single|admissibleProjectsExample
$ 20,000
Implementing a short-term disability plan for a new software development startup
$ 20,000
Establishing a comprehensive short-term disability plan for employees at a non-profit organization
$ 20,500
Implementing a short-term disability plan at a social economy enterprise
$ 25,000
Introducing a short-term disability program at a financial cooperative
$ 25,000
Implementing a new short-term disability plan for employees at a local manufacturing company
$ 25,000
Introducing a new short-term disability plan for employees at a legal firm
grant_single_labels|admissibility
Eligibility for the EI Premium Reduction Program requires that the employer-provided short-term disability plan meets specific criteria.
- The plan must provide at least 15 weeks of benefits for short-term disability.
- The benefits provided by the plan must match or exceed those offered under EI regulations.
- Benefits must be disbursed to employees within 8 days of illness or injury, with an elimination period not exceeding 7 consecutive days.
- Employees must have access to the plan within 3 months of their hiring date.
- The plan must cover employees on a 24-hour-a-day basis.
- The employer must provide evidence of commitment to the short-term disability plan.
- The employer must undertake to return five-twelfths of the savings from the premium reduction to employees covered by the plan.
grant_eligibility_criteria|who_can_apply
Employers who have insured employees covered by a short-term disability plan may apply. Insured employees are those on whose behalf an employer remits EI premiums to the Canada Revenue Agency (CRA).
grant_single_labels|criteria
The evaluation and selection criteria for the EI Premium Reduction Program are based on the short-term disability plan provided by the employer and whether it meets specific requirements. Employers must ensure their plans meet the minimum criteria to qualify for a premium reduction.
- Provide at least 15 weeks of benefits for short-term disability
- Match or exceed the level of benefits provided under EI
- Pay benefit to employees within 8 days of illness or injury (the elimination period cannot exceed 7 consecutive days)
- Be accessible to employees within 3 months of hiring
- Cover employees on a 24-hour-a-day basis
grant_single_labels|register
- Step 1: Verify Eligibility
- Ensure your short-term disability plan meets all the basic requirements laid out in the program guide.
- Step 2: Prepare Required Documentation
- Prepare a copy of the short-term disability plan(s) you provide to employees.
- Gather any applicable collective agreement(s) related to employees covered by the plan.
- If available, prepare a written mutual agreement regarding the return of the employees' portion of the reduction.
- Step 3: Complete Application Form
- Access the application form for Employment Insurance Premium Reduction (NAS5022).
- Fill out the form with accurate details about your organization and the short-term disability plan.
- Step 4: Submit Application
- Submit the completed application form and all required documents to the Service Canada office handling EI Premium Reduction.
- Ensure any missing documentation is provided within 30 days if requested by Service Canada.
- Step 5: Await Decision
- Await written notification from Service Canada regarding the outcome of your application.
- If approved, receive the reduced EI premium rate and recalculate your payroll as necessary.
- Step 6: Address Any Issues
- If not approved, carefully review the reasons provided and consider resubmitting with modifications, or appeal if necessary.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- The Premium Reduction Program requires employers to refund five-twelfths of the savings to the employees covered by their plan.
- Employers must maintain sufficient documentation proving the eligibility of their short-term disability plans and must be prepared to submit additional documentation upon request within 30 days.
- If granted a reduction, employers might need to adjust their financial calculations retroactively from January 1 of the calendar year in which the reduction applies.
- A written appeal can be submitted within one year if the employer disagrees with a non-entitlement decision.
- Employers must notify the program of changes to their short-term disability plan, address, payroll deductions account, ownership or organizational structure.
