Employment Insurance (EI) guide - how to complete the Record of Employment (ROE) Form

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Importance of the ROE
When to issue a ROE
Description of Blocks 1 to 19 of the ROE
Summary Chart for insurable earnings and hours
Frequently asked questions
Inquiries regarding insurability
To order ROE forms
Useful Internet links
For ROE assistance

Additional information for all school boards New
Changes to Regulations Concerning Electronic ROEs 
Employment Insurance additional information for Employers 

Importance of the ROE        

The ROE is the single most important document in Employment Insurance (EI). Service Canada uses the information on the ROE to determine whether a person qualifies for EI benefits, the benefit rate and the duration of his/her claim. The ROE also plays an important role in controlling the misuse of EI funds. A ROE must be issued even if the employee has no intention of filing a claim for EI benefits.

Record of Employment on the Web (ROE Web)

The ROE Web is a Service Canada response to a long-standing request from employers to facilitate the ROE creation process. Each year, over one million Canadian employers create eight million multiple-part ROE forms at considerable expense. An employer must complete a ROE form whenever there is an interruption of earnings. ROE Web consists of a suite of applications that enables employers to create, view, amend, print and submit ROEs via the net using Internet technology. To know more...

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When to issue a ROE        

If you submit ROEs using the paper forms:

You must issue an ROE within five calendar days of either the employee’s interruption of earnings, or the date the employer becomes aware of the interruption.

If you submit ROEs electronically:

If your pay period is weekly, biweekly, or semi-monthly, you must issue an electronic ROE within five days of the end of the pay period during which the employee’s interruption of earnings occurs.
If your pay period is monthly or every four weeks, you must issue an electronic ROE on one of the following dates, whichever is earlier:

• up to five days after the end of the pay period during which the employees interruption of earnings occurs; or
• up to 15 days after the first day of the interruption of earnings.
  

When does an interruption of earnings occur?

When an employee:

Exceptions: this seven-day rule does not apply to the two following cases:

• Real estate agents: an interruption of earnings occurs only when their license is surrendered, suspended or revoked.
   
• Employees paid mainly by commission: an interruption of earnings occurs when the employment relationship ends.

An interruption of earnings also occurs when the salary falls below 60% of normal weekly earnings due to illness, injury, quarantine, pregnancy, the need for a parent to care for either newly born or adopted children, or the need to provide care or support to a family member who is gravely ill with a significant risk of death.

In all cases, a ROE must be issued when requested by Service Canada .

Special situations:

The ROE may not have to be issued within the five-day period:

1. Change in Ownership: 

This is an interruption of earnings for the employees concerned. However, no ROE is required as long as these two (2) conditions are met:

• there has not been an actual break in the employee's receipt of wages or salary between former and new employers; and
• the former employer's payroll records are available to the new employer and the new employer agrees to issue a single ROE covering both periods of employment should the need arise.  

2. For part-time, on-call or casual workers:

The ROE may not be issued each time there is an interruption of earnings, but it must be issued in the following circumstances:

• the ROE is requested by the employee and an interruption of earnings has occurred;
• the employee is no longer on the employer's active employment list;
• the ROE is requested by Service Canada;
• no work is performed for 30 days and there are no insurable earnings for that period. 

3. Mass lay-off:
 
When a large number of employees are being laid off, as in a plant closure, special arrangements can be made regarding ROE issuance. Contact your local Service Canada Centre for more information.

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Description of Blocks 1 to 19 of the ROE        

To order ROE forms...

Example of ROE  

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Block  1 - Serial number

Each ROE is numbered with a pre- printed serial number. It is important for an employer using paper ROEs to keep records of the serial numbers of the ROEs that have been completed for a period of six (6) years.  With ROE Web, serial numbers are assigned as the Web ROE is issued, there is no requirement to keep a record of these serial numbers.

Block  2 - Serial number of ROE amended or replaced

Complete this area when a ROE is issued to amend or correct information provided on a previous ROE. If an amended ROE is completed, all Blocks have to be filled out including the unchanged initial information.

Block  4 - Employer's name and address

Enter the employer's name and address as they appear on Canada Revenue Agency (CRA) remittance form (PD7A).

Block  5 - CRA Business Number (BN)

Enter the BN used to report the employee's EI premiums to CRA. When there are multiple BNs used to report payroll source deductions, please ensure the correct BN is used. Your BN consists of 9 numbers followed by RP and 4 numbers. You must enter the entire 15 characters.

Block  6 -Pay period type

Enter your pay period type as shown in the chart on the reverse side of the ROE form. For employees who are paid solely on commissions or on salary and irregularly paid commissions, use the "weekly" pay period type. For employees who are working on a contract basis and who are paid during pay periods that do not cover the entire period of the contract, e.g. teachers, use the "weekly" pay period type.

Block  10 - First day worked

Enter the first day of work. If a ROE has been previously issued to the employee because of a separation from employment, enter the date the employee returned to work or the first day of the new contract (unless the current ROE is amending a previous ROE and Block 2 is completed).

Block  11 - Last day for which paid

Enter the last day for which the employee was paid. This would normally be the last day of work. However, sometimes the employment relationship continues after the last day of work. For example:

• Last day worked: January 11, 2008
• One week scheduled paid vacation leave — time taken: from January 14, 2008
• Last day for which paid: January 18, 2008

In this case, January 18, 2008 is the last day for which paid, Block 11, because the employment relationship continued after the last day worked.

Where unpaid wages are owing to an employee on termination, you must enter the last day for which those wages are owed.

When you pay statutory holiday pay, the date you enter in Block 11 should still reflect either the actual last day the employee worked, or the last day for which the employee was paid if the employee was on paid vacation, sick leave or other paid leave.  The date in Block 11  should not reflect the date of the statutory holiday.  Statutory holidays occurring after the date in Block 11 should be entered in Block 17B.

Block  12 - Final pay period ending date

Enter the final pay period ending date that includes the last day for which paid, Block 11. Blocks 11 and 12 will generally be different dates, except when the last day paid corresponds to the last day of the pay period.

Block 13 – Occupation (Optional)

If you choose to complete this block, provide a description of the employees usual occupation or title.

Block  14 - Expected date of recall (Optional)

If you choose to complete this block, enter the date the employee will be returning to work. Otherwise, check the "unknown" box or the "not returning" box.

Block  15A - Total insurable hours

Enter the total insurable hours worked or paid during the required period. First, identify, according to your pay period type, the number of consecutive pay periods required to calculate this total. Refer to Table 1 — or to the reverse side of the ROE form. Then, determine the total insurable hours for the applicable period starting with the most recent pay period — the pay period which includes the date shown in Block 11. For example, where the pay period type is "weekly", provide the total insurable hours in the last 53 consecutive pay periods, or less if the period of employment is shorter.

Be careful:

Make sure that the total includes hours worked, paid leave and Compensatory Time Off, as they represent paid insurable hours — see the Summary chart for insurable earnings and hours. 

A stand-by hour is not an hour worked and is therefore generally not considered to be insurable, unless:

• the stand-by hours are paid at a rate equal to or higher than the employee’s regular rate of pay; or
• the employer requires the employees to be at the workplace, in case a service is required, provided the employee is remunerated, regardless of the rate of pay.

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 Block  15B - Total insurable earnings

Enter the total insurable earnings for the required period. First, identify, according to your pay period type, the number of consecutive pay periods to be used to calculate this total. Refer to Table 2 — or on the reverse side of the ROE form. Then, determine the total insurable earnings for the applicable period starting with the most recent pay period — the pay period which includes the date shown in Block 11. For example, where the pay period type is "weekly", provide the total insurable earnings in the last 27 consecutive pay periods, or less if the period of employment is shorter.

Note:

• Add to the total any additional insurable earnings entered in Block 17 of the ROE, e.g. wages in lieu of notice, vacation pay or statutory holiday pay.   
• While insurable earnings for premium purposes are limited annually, there is no such maximum for EI reporting purposes. For example, if the total insurable earnings for the period specified in the chart, are $56,345.02, report this amount in Block 15B.
• Always report "gross" amounts — before any payroll deductions. You should never report "net" amounts.

Be careful:  

• The number of pay periods to be used for Block 15B, Earnings, will be different than the number of pay periods used for Block 15A, Hours. For example, for a "weekly" pay period type, it is the total of the last 27 pay periods that must be entered in 15B as opposed to the last 53 pay periods for 15A.  
• Include both dollars and cents. Do not round the total.

Block  15C - Insurable earnings by pay period

Complete 15C only if one or more pay periods have no insurable earnings. To establish the number of consecutive pay periods to be entered in Block 15C, refer to Table 2 Show the insurable earnings of the most recent pay period - the pay period which includes the date shown in Block 11- in Block 15C PP1. Also include in Block 15C PP1 all insurable earnings paid/payable on separation - e.g. vacation pay, lieu of notice pay, statutory holiday pay, etc.- that are listed in Block 17. Then, enter each consecutive pay period up to the number of pay periods required and enter 0.00 - which represents NIL - for each pay period having no insurable earnings and no work. Finally, add all amounts from Block 15C and report the total in Block 15B.

Be careful:

• The insurable earnings shown in the last pay period, 15C PP1, must include the insurable earnings entered in Block 17. Please note that PP1 cannot be 0.00 - which represents NIL.
    
• Enter only the number of consecutive pay periods (PP) corresponding to your pay period type. A "weekly" pay period type - 27 PP - requires more pay periods than a "bi-weekly" type - 14 PP - or a "monthly" type - 7 PP.
    
• It is very important, when you copy information from your payroll in Block 15C, to enter 0.00 - which represents NIL -where there is a period with no work and no insurable earnings. Do not skip to the next pay period.
    
• Include both dollars and cents. Do not round the totals.

Special situations for Blocks 15B and 15C:

• For calculation of insurable earnings for teachers, use the formula. 
    

• For employees who are working on a contract basis and are paid on a different period than the contract, the following method must be used to report the insurable earnings in Block 15B: 
  
  Average the total of the insurable earnings paid for the contract period by dividing these earnings by the number of weeks —or part-weeks — in the contract. Then, multiply this weekly average by 27, or less — if the period of employment is shorter — according to the "weekly" pay period type in Table 2.

• For employees who are paid solely on commissions or on salary and irregularly paid commissions, the following method must be used to report insurable earnings in Block 15B:

Average the total insurable earnings paid in the last 52 calendar weeks, or less — if the period of employment is shorter — by dividing these earnings by 52, or by the actual number of weeks worked if less. Then multiply this weekly average by 27, or less —if the period of employment is shorter — according to the "weekly" pay period type in Table 2  

Block  16 -Reason for issuing this ROE

Enter one of the codes corresponding to the reason for issuing this ROE from the table on the right hand side tear-off portion of the ROE. This table also appears on the reverse side of the ROE form, parts 1 and 3. If none of the reasons in the table apply, use code "K" - other - and provide an explanation in Block 18 "Comments". Avoid the use of code “K - Other”.  This code should be used only in exceptional circumstances since codes have been assigned to the most common reasons for issuing an ROE.

Helpful hint:  If the reason for issuing the ROE is an end of contract, an end of season, a temporary shutdown of operations or any other reason equivalent to a "shortage of work", indicate reason code "A". Do not include these comments in Block 18.

Block 17 - Payments of benefits - other than regular pay -  paid in, or in anticipation of the final pay period, or payable at a later date during the interruption of earnings, permanent or not, regardless of whether or not these monies are insurable - see the Summary chart for insurable earnings and hours.

17A: Vacation pay: Enter all vacation pay that meets the above.

17B: Statutory holiday pay: Enter the dates of any statutory holidays occurring after the date in Block 11.  If the employee’s departure is final, then only the statutory holiday earnings are insurable, and not the hours.  Be sure to include the earnings in Block 15B (and 15C if applicable).  If the employee’s departure is not final, then both the statutory holiday hours and the statutory holiday earnings are insurable and should be included in Blocks 15A and 15B (and 15C if applicable).  Include all statutory holidays you are paying on termination even if they fall in a pay period that occurs after the pay period that includes the date entered in Block 11.  Statutory holidays occurring before the date noted in Block 11 should not be shown in Block 17B, but should be included in Blocks 15A and 15B (and 15C if applicable) in the pay period for which they were paid.

17C: Others monies: Enter any other payments, insurable or not, or amounts owing to an employee following the interruption of earnings : e.g. pension payments; both lump sum and ongoing severance payments or retiring allowances; bonuses; wages in lieu of notice; retroactive wage increases; details regarding a Supplemental Unemployment Benefit plan and other.

Do not forget :

The insurable earnings — and only the insurable earnings — entered in Block 17 must also be added to the totals of insurable earnings in Blocks 15B and 15C PP1, when applicable. For example, an amount of vacation pay paid on separation will be added to the totals of 15B and 15C PP1, when applicable. However, a retiring allowance, even if entered in 17C, will not be added to the totals of 15B and 15C PP1 since it's not insurable.

Block  18 - Comments - Comments should only be used in exceptional circumstances to provide additional information or clarification.  Do not include comments that only confirm information already on the ROE. 

Examples of additional information :

• Details regarding the reason for leaving or separation;
• Comments to specify the reason for issuing the ROE, e.g. requested by Service Canada.

Block 19 -  Only complete  if paid sick/ maternity/ parental leave or group wage loss indemnity payment after the last physical day worked. If the employee is receiving one of these indemnities, either from the employer or a third party, enter the start date for the indemnity and the weekly or daily rate. Provide any additional details in the "Comments" section, Block 18.

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Notes:

1. Allocate the earnings you pay to an employee to the pay period the employee earned them.  In the case of leave taken, allocate to the period of leave.
     
2. Allocate the earnings to the pay period in which you paid them.
    
3. Allocate the earnings to the last pay period that you paid regular salary, wages or commissions.
    
4. Where the actual hours of work are not known for employees paid by commission or when the worker and the employer have not agreed on what hours would be considered for insurability, the hours of work are determined by dividing the insurable earnings in the last 52 calendar weeks, or less depending on the period, by the applicable provincial minimum wage in force on January 1. When this period overlaps two calendar years, two calculations must be done, using the minimum wage in force each year, if different. The result cannot be more than 35 hours a week.
    
5. Most non-taxable earnings are not insurable, e.g. travel allowances. For more information, contact the Canada Revenue Agency.
    
6. When work is performed on a day the employee is given paid leave, insurable hours are the greater of the hours actually worked or the otherwise normal hours of work. For example, where an employee, who normally works 7.5 hours on a working day, is paid four hours overtime on a statutory holiday, 7.5 hours are insurable. Should the same employee have work 10 hours on that holiday, 10 hours would be insurable.
    
7. Overtime:
   a)  When an employee works overtime and is paid for it, the hours are insurable. Include the actual number of hours the employee worked. 
   
   b)  When an employee takes overtime as leave, the insurable hours are the number of hours the employee takes in leave. 
   
   c)  When an employee accumulates overtime hours and you pay for those hours on termination of employment or afterward, be sure to include these insurable earnings in the last pay period of salary, wages or commission.  However, you must allocate the hours to the actual period during which the employee worked the overtime. *
   
   *For reporting purposes, if the employee worked the overtime during the previous 52 weeks (or since the last ROE was issued if the period is shorter than 52 weeks), you will add the number of overtime hours worked to the total insured hours reported in Block 15A.  If the employee worked the overtime before this period, do not report it.  On occasion, a Service Canada representative may need to contact you to verify when the employee worked the overtime.  This will only be the case when an employee does not qualify for E.I. benefits based on what is reported, and knowing what period the overtime represents may result in the employee qualifying for benefits.
    
8. Pay adjustments are situations where there has been a delay in recognizing, implementing or processing a change in the employee's pay. For example, an increase in wages under a union contract, agreed to three months after the end of the previous contract, gives rise to a retroactive pay increase or adjustment. By contrast, pay corrections involve errors. This may be hours missed when a previous pay period was processed or the back wages paid to an employee who was wrongfully dismissed.
    
9. On separation means: paid in, or in anticipation of the final pay period, or payable at a later date during the interruption of earnings, permanent or not.
    
10. Any questions on retiring allowances should be directed to the Canada Revenue Agency.

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Frequently asked questions         

Q1  – Do I have to use the same number of pay periods to determine the total insurable hours — Block 15A — and the total insurable earnings — Block 15B?

A1  – No. There's a chart to determine the total insurable hours and there's a different one to determine the total insurable earnings.

Q2  – What's the difference between the last physical day worked, last day for which paid — Block 11— and final pay period ending date — Block 12?

A2  – The last physical day worked is the actual last day the employee performed services. The last day for which paid is the last day for which you paid EI premiums for the employee. The final pay period ending date is the actual end date covering the full pay period.

Q3  – Under which circumstances would I have to issue an amended Record of Employment?

A3  – An amended Record of Employment must be issued when information needs to be changed or corrected on a previously issued ROE or Service Canada request an amended ROE.

Q4  – Do I have to store a copy of the ROE ?

A4  – You are required to store a copy of the ROE for a six-year period. Web-ROEs are stored electronically for that same period of time. You must ensure that ROEs complete or blank be maintained in a secure environment.

Q5 – Is it mandatory that a copy of each ROE issued be sent to Bathurst?

A5  – You must ensure that a copy of all paper ROEs completed are sent to Bathurst.  ROEs beginning with “W” and “S” serial number do not have to. 

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Enquiries regarding insurability    

These types of enquiries should be directed to the Canada Revenue Agency (CRA) . Their telephone number may be found in the Government of Canada blue pages of your local telephone directory.

More information on EI premiums can be obtained from the following CRA sources:

• - T4001- Employers' Guide - Payroll Deductions  - Basic Information with Chapter 3 containing details on insurable employment, earnings and hours and calculating EI premiums.
• - T4130 - Employers' Guide -Taxable Benefits 

Copies of these publications may be obtained from your local Taxation Services office or on CRA's Internet site listed above.

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To order ROE forms          

Please note that since not all offices offer this service in person, we advise that you call first.

Canadian businesses can order ROE forms by : 

• calling their Service Canada Centre — first select the nearest office in your region and then go to "Phone Services" ; or
• Completing the ROE order form and fax or mail it to the office nearest you;

 For more information on how to order ROE forms...

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Useful Internet links  

• Employment Insurance Information for employers
• For information on the ROE Web
• Reducing EI premiums 
• Request for Payroll Information form
• Publications for employers

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For ROE assistance  

To obtain more information on how to complete the ROE you may call a ROE advisor at one of the telephone numbers listed below :