Hope everyone had a wonderful Christmas and New Year!
Here in the office I am getting ready for the glorious 2017 Tax season, I hope you are as well.
Today’s Tax Tip is about Employment Insurance:
Over the years I have seen many people in situations of owing large amounts BACK to CRA and E.I due to the Claw Back/Repayment program in place. There are some situations where there is no repayment rate (Maternity leave, illness and disability) but most of the time the repayment rate is 30%.
Here are a couple of tips on how to avoid this:
1) Make sure that you are always claiming your income, no matter what amount you receive make sure you claim it. Yes your payment that week will be lower but it is in your best interest.
2) Call E.I and have them deduct extra taxes off of you. I know that this isn’t ideal but it is also in your best interest.
3) Put a few bucks away off each pay to cover anything at tax time.
4) If you have had multiple jobs through the year, either before or after your E.I claim, keep a close eye on the amount(s) you have made as this could also effect your repayment amount come tax time.
