If you offer your employees a short-term disability plan that obeys certain requirements, you may be entitled to pay your Employment Insurance (EI) premiums at a lower rate compared to the standard employer rate of 1.4 times the employees’ EI premiums. According to CRA, in order to be considered for this reduction, your plan must:
- cover employees on a 24-hour-a-day basis
- provide at least 15 weeks of benefits for short-term disability
- at least match or exceed the level of benefits that are 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
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