EI Premium reduction guide Chapter 2: Applying for an EI premium reduction
How do I apply for an EI premium reduction?
There are two ways to apply for an EI premium reduction:
- you can complete Form NAS-5022, Application for Employment Insurance Premium Reduction, or
- you can request it in writing using your company letterhead.
What information do I need to send along with my application?
With your application, you must include the following information:
- evidence of your commitment to provide a short-term disability plan; and
- your undertaking to return the employees' portion of the savings.
a) Evidence of your commitment to provide a short-term disability plan
With your application for an EI premium reduction, you must provide evidence that you have made a formal commitment to your employees to provide them with a short-term disability plan.
This formal commitment can be any document that provides details about your short-term disability plan, including:
- a union or association agreement;
- an industry-wide trust contract;
- a private carrier's insurance policy;
- an administrative measure contained in your employees' handbook;
- minutes of a Board of Directors' meeting indicating that your employees are provided with a short-term disability plan;
- a statement contained in a personnel policy bulletin; or
- any commitment in writing to your employees.
The formal commitment must include a complete description of the benefits you are providing under the short-term disability plan.
b) Your undertaking to return the employees' portion of the savings
With your application for an EI premium reduction, you must provide evidence that the employees to whom the premium reduction applies will benefit from the premium reduction in an amount equal to at least 5/12 of the savings.
Acceptable methods for returning the savings include the following:
- a cash remittance;
- new employee benefits that you provide to your employees as a result of the premium reduction, such as a dental plan, a group life insurance, free beverages or free social activities; or
- increased employee benefits or upgrading of existing benefits, such as more holidays or more time off work.
Note: You can only use benefits already contained in a collective agreement if you and the union have a written agreement on this matter.
You can provide us with details about your method for returning 5/12 of the savings by completing the appropriate section of Form NAS-5022, Application for Employment Insurance Premium Reduction.
If you have different methods for returning 5/12 of the savings for separate groups of employees, you must provide the details about the method you use for each group.
If you and your employees have signed a mutual agreement on how you will return the employee's portion of the savings, please include it with your application. Below is an example of the format you may use for such an agreement.
Where do I send my application?
Send your application by mail, along with the required documentation, to the address provided in Chapter 7.
When can I apply for an EI premium reduction?
You can apply for an EI premium reduction at any time.
What is the effective date of the EI premium reduction?
If your plan meets all the requirements on the date of your initial application, we will determine the effective date of the EI premium reduction as follows:
- If you send the application on or before the 15th of the month, the effective date of the premium reduction is the first day of the following month. Example: If you send us your initial application on June 10, the effective date of the EI premium reduction is July 1.
- If you send the application on or after the 16th of the month, the effective date of the premium reduction is the first day of the second following month. Example: If you send your initial application on February 23, the effective date of the EI premium reduction is April 1.
What if some of my documents are not available when I apply?
Submit your application along with any documents you can supply. We will contact you to request any missing documentation required when we assess your application. The missing documentation must be provided within 30 days after our request is made.
What if my plan does not meet all the requirements when I apply?
If your short-term disability plan does not meet all the requirements on the date you submit your initial application, we will send you a non-entitlement decision letter. The letter will include the reasons why you do not meet the requirements for receiving a reduction.
If you choose to modify your plan so that it meets all the requirements, you will be required to resubmit an Application for Employment Insurance Premium Reduction (NAS5022) along with a copy of your revised plan.
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