- Pregnancy
- Baby & Toddler
- Parents
- Getting Pregnant
- Baby Names
- Product Reviews
-
Registry
- Community
-
More
Want a personalized experience?
Download the free app
June 2017 Moms
ChrisLipstick
member
EI payments (Canadian mommies)
ChrisLipstick
member
Hi ladies,
I have been trying to find some information of EI maternity benefits. I found on the website that the maximum amount is $543 per week and that it is taxable. Does anyone know if taxes are deducted before you receive your payment or if you just have to declare the amount when you file taxes next year? I am trying to put together a budget and it would be really helpful if I could figure out if I will be getting the full $543 or if a certain amount will be taken off. Anyone with any experience?
Also, FYI, I found out the two week waiting period has been shorted to one week.
Thanks!
I have been trying to find some information of EI maternity benefits. I found on the website that the maximum amount is $543 per week and that it is taxable. Does anyone know if taxes are deducted before you receive your payment or if you just have to declare the amount when you file taxes next year? I am trying to put together a budget and it would be really helpful if I could figure out if I will be getting the full $543 or if a certain amount will be taken off. Anyone with any experience?
Also, FYI, I found out the two week waiting period has been shorted to one week.
Thanks!
Re: EI payments (Canadian mommies)
There's only a couple Canadians on the July board and I've been hesitant to create a thread solely asking about Canada's mat leave benefits. I hope you guys don't mind me joining in!
A friend of mine didn't have the taxes taken off and she said she owed about $1500 on her taxes the following year. I will definitely be going the route of having them take the taxes off of each cheque. One less thing to worry about.
Does anyone know the appropriate time to go to Services Canada to make mat leave arrangements? I'm due in early July, and I'm wondering how much lead time I should give them.
To to answer your questions first, I believe by default they take off some taxes, but not the full amount. You will get a T4E next year at tax season that has all the correct numbers for you, they just usually don't tax at a high enough level (if it's the same as regular EI). The maximum of $543 is only the maximum if your regular salary is high enough (your personal maximum will be approx. 55% of your regular salary) so don't count on their maximum number unless your salary is higher than ~$975/week. I think the maximum amount is also pre-tax so it will actually be slightly
lower than that for your net amount. I can check later at my past regular EI claims to be sure, but I'm on mobile right now and it's been awhile so I'm not 100% on that.
As for the changes, it's still a little unclear since its new, and hasn't been added to the official government website information yet, but my understanding is you can now start getting MEI up to 12 weeks before your due date (instead of the previous 8), and after the 12 months (which I'm a bit unclear about as I thought it was only 35 weeks, but I digress) you have the option of an additional 6 months but at a lowered rate of 33% of your regular income. The benefit is not only more time with baby, but after 18 months daycare costs are generally reduced because toddler prices are lower than infant prices. So it's a trade-off for sure.
I also don't know yet how the changes affect parental leave for fathers, since previously it was that there was a total of 35 weeks between mom & dad to be split however you decide ie 25 weeks for mom and 10 for dad, or all for mom, or 33 for mom and 2 for dad etc etc.
At some point that will change to allow claims made as early as 12 weeks pre-EDD, but no word on when that change takes effect, and either way it doesn't change that you can't apply until after your last day of work. I believe it's mainly for cases when someone is on bed rest or otherwise unable to work any closer to their due date.
I'm also the breadwinner and contemplating going back before the year is up. Taking off 18 months sounds great, but only making 33% of my salary wouldn't even cover the bills. It's going to be tough enough going down to 55%!
second bold - if you take the 18 month option the entire 18 months will be paid at 33% not just the last 6 months. Basically the total amount you receive from EI will be the same regardless of your time off and it's up to you if you want to spread that money over 12 or 18 months.
The second part was how I initially understood it too, but after reading numerous news articles about it, there were a few that explained it the way I had it listed. Like I said, it's hard to be sure since its not on official government websites yet but I definitely wouldn't be surprised if you're correct, since it doesn't actually cost them anything more that way. I guess seeing the better option just gave me wishful thinking that it would be set up that way. I'm not sure that I'll know right away if I want 12 or 18 months, that feels like such a long time in the future to decide before even knowing how your baby will be.
Proposed changes will allow parents to choose to receive EI parental benefits over an extended period of up to 18 months at a lower benefit rate of 33 per cent of average weekly earnings. EI parental benefits will continue to be available at the existing benefit rate of 55 per cent over a period of up to 12 month
@lifeislove87 still no official word on when the he change will come into effect. They need to pass the budget and amend the Employment Insurance act. Last time there was a change to maternity leave it became official January 1 of the following year but hopefully this time it goes into effect right away.