EI Benefits & Tax Guide

Types of EI Benefits

Regular Benefits

• Job loss through no fault of your own
• 55% of average insurable earnings
• Maximum $668/week (2024)
• 14-45 weeks depending on region and hours

Maternity Benefits

• 15 weeks for birth mother
• 55% of earnings (max $668/week)
• Can be combined with parental

Parental Benefits

• Standard: 40 weeks at 55%
• Extended: 69 weeks at 33%
• Can be shared between parents

Sickness Benefits

• Up to 26 weeks
• 55% of earnings
• For illness, injury, or quarantine

Caregiving Benefits

• Family caregiver: 15 weeks
• Compassionate care: 26 weeks
• For care of family members

How EI Is Taxed

Tax Withheld at Source

• Federal tax withheld from EI payments
• Rate based on estimated annual income
• May not be enough if you have other income

The T4E Slip

You'll receive a T4E showing:

• Box 14: Total EI benefits paid
• Box 22: Income tax deducted
• Box 18: EI repayment (if applicable)
• Box 20-21: Parental benefit codes

EI Clawback (Repayment)

When Clawback Applies

• Net income over $79,000 (2024)
• Applies to regular and fishing benefits only
• Does NOT apply to special benefits (maternity, parental, sickness)

How Clawback Works

• Repay 30% of lesser of:
• Net income over $79,000, OR
• Total regular EI benefits received
• Deducted at source if identified early

Example

• Net income: $95,000
• EI benefits received: $8,000
• Income over threshold: $16,000
• Clawback: 30% × $8,000 = $2,400

Reporting EI on Your Tax Return

Where to Report

• Line 11900: EI benefits (Box 14)
• Line 23500: Social benefits repayment (clawback)
• Line 43700: Tax withheld (Box 22)

If You Have Multiple T4Es

• Add all Box 14 amounts
• Report total on Line 11900
• Add all tax withheld

EI and Other Benefits

Effect on GST/HST Credit

• EI counts as income for GST credit calculation
• May reduce quarterly payments
• Effect in year after you file

Effect on Canada Child Benefit

• EI counts as family income
• May reduce CCB payments
• Calculated based on previous year's income

Effect on Provincial Benefits

• May affect Ontario Trillium Benefit
• May affect other provincial credits
• Each province calculates differently

EI Premium Refund

Over-Contribution

You may have overpaid EI premiums if:

• Multiple jobs in the year
• Each employer deducted full premiums
• Total exceeds maximum ($1,049.12 in 2024)

Getting a Refund

• Calculate overpayment on tax return
• CRA refunds automatically
• No separate application needed

Working While on EI

Earnings Allowance

• Can earn some money while on EI
• 50 cents deducted for each dollar earned
• Up to 90% of your previous earnings
• Report earnings accurately

Tax Implications

• Work earnings taxed normally
• EI benefits taxed normally
• May push into higher bracket

Special Situations

EI and Severance

• Severance may delay EI start date
• Allocated over insurable hours
• Both are taxable
• Plan for combined tax impact

EI and CERB/Recovery Benefits

• Different programs, different slips
• CERB on T4A
• All are taxable income
• May have repayment obligations

Tax Planning Tips

Request Additional Withholding

• Contact Service Canada
• Request extra tax deducted
• Avoids year-end tax surprise

RRSP Contributions

• Can reduce net income
• May avoid clawback threshold
• If you have contribution room

Income Timing

• Consider when EI will be received
• May span calendar years
• Plan for each tax year